Most macroeconomists believe that both fiscal and monetary policy can shift aggregate demand and that such interventions can be counterproductive.
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Q12: The natural rate hypothesis states that the
Q13: The natural rate hypothesis suggests that improvements
Q14: Decreases in aggregate demand move the economy
Q15: Critics of the extreme rational expectations theory
Q16: An increase in aggregate demand would move
Q18: The Phillips curve relationship can also be
Q19: Rational expectations theory suggests that government or
Q20: Either supply shocks or adjusting inflation expectations
Q21: Assuming wages are indexed to inflation, if
Q22: Critics of inflation targeting will argue that
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