Solved

The Second Round Increase in Inflation Following an Adverse Supply

Question 14

Multiple Choice

The second round increase in inflation following an adverse supply shock is the result of:


A) shifts in potential output.
B) increases in the Federal Reserve's target real interest rate.
C) decreases in the Federal Reserve's target real interest rate.
D) increases in long-term inflationary expectations.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions