In general,the faster inflationary expectations adjust,the:
A)less macro policy can influence unemployment.
B)better discretionary policy can be expected to work.
C)slower the adjustment of the short-run Phillips curve.
D)stronger the case for active policy.
E)more effectively a policy can influence unemployment.

Question

Quizplus · Accepted Answer

When inflationary expectations adjust quickly, it becomes harder for macroeconomic policy to influence unemployment because economic agents quickly anticipate the effects of policy changes, thereby neutralizing potential impacts on unemployment.

In General,the Faster Inflationary Expectations Adjust,the