Multiple Choice
In the basic model that includes the AD and LRAS curves only, a shock that reduces the velocity of money by 2 percentage points causes:
A) a decrease of the inflation rate by 2 percentage points.
B) a decrease of the inflation rate by less than 2 percentage points.
C) an increase of the inflation rate by 2 percentage points.
D) an increase of the inflation rate by less than 2 percentage points.
Correct Answer:
Verified
Correct Answer:
Verified
Q55: If the growth rate of money is
Q60: A temporary positive shock to spending growth
Q79: From an initial equilibrium in the AD-AS
Q84: Since 1980, shocks to rainfall are becoming
Q88: When a war breaks out in the
Q89: How has the price of oil generally
Q91: If a productive new technology arrives, the
Q95: Deflation:<br>A) lowers the real value of debts.<br>B)
Q147: In the graph of the AD-AS model,what
Q194: The Smoot-Hawley Tariff of 1930 delivered a:<br>A)