Econ Flashcards
1
Q
Lags
A
Recognition
Implementation
Response
2
Q
Philips curve
A
Fed creates surprise inflation U
3
Q
3 dangers
A
U
4
Q
2 expectations
A
Adaptive
Rational
5
Q
3 policies
A
Accommodation: keep y from falling B increase Ms increases r decreases AD increases, change in p is bigger
Extinguishing: keep p from rising B decreases Ms decreases r increases and AD decreases, change in Y is bigger
Ignore: Self correction
