Suppose the Fed begins carrying out an expansionary monetary policy in order to close a recessionary gap. Relate what happens during the next two phases of the inflation–unemployment cycle to the...

Suppose the Fed begins carrying out an expansionary monetary policy in order to close a recessionary gap. Relate what happens during the next two phases of the inflation–unemployment cycle to the maxim “You can fool some of the people some of the time, but you can’t fool all of the people all of the time.”