5. Under the natural rate hypothesis, expansionary monetary and fiscal policies can at best produce a (an): a. short-run change in the long-run Phillips curve. b. short-run change in the unemployment rate. c. permanent change in the inflation rate. d. permanent change in the unemployment rate. 6. Under adaptive expectations theory, people expect the rate of inflation this year to be: a. the rate based on predictable and fiscal policies. b. the same as last year. c. zero, regardless of the rate last year. d. All of the above. e. None of the above. 7. "Preannounced, stable policies to achieve a low and constant money supply growth and a balanced federal budget are therefore the best way to lower the inflation rate." This statement best illustrates the: a. Keynesian theory. b. rational expectations theory. c. adaptive expectations theory. d. supply-side theory. e. incomes policy