Multiple Choice
A supply shock that is not responded to with an expansionary policy will result in
A) a one-time increase in the price level, but not inflation.
B) neither a one-time increase in the price level nor inflation.
C) both a one-time increase in the price level and inflation.
D) inflation, but not a one-time increase in the price level.
Correct Answer:
Verified
Correct Answer:
Verified
Q72: Demand-pull inflation results from<br>A)workers' pressure for higher
Q73: If the nominal interest rate on saving
Q74: Between 1939 and 2006 consumer prices rose
Q75: Which of the following is the correct
Q76: A disinflation policy that lacks credibility<br>A)results in
Q78: Despite its costs, governments typically resist eliminating
Q79: A 10% inflation rate means that<br>A)prices of
Q80: Under a rules strategy for monetary policy,
Q81: According to the equation of exchange, the
Q82: Inflation that is lower than expected redistributes