If people assume that future rates of inflation will follow, Business Economics

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If people assume that future rates of inflation will follow

1. If people assume that future rates of inflation will follow the pattern of inflation rates in the? past, they are said to have

A. unstable expectations.

B. adaptive expectations.

C. rational expectations.

D. accommodative expectations

2. As a result of crowding out in the short? run, the effect on real GDP of an increase in government spending is often

A. unrelated to the increase in government spending.

B. less than the increase in government spending.

C. equal to the increase in government spending.

D. more than the increase in government spending

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