Multiple Choice
A favorable supply shock causes the price level to
A) rise.To counter this a central bank could increase the money supply.
B) rise.To counter this a central bank could decrease the money supply.
C) fall.To counter this a central bank could increase the money supply.
D) fall.To counter this a central bank could decrease the money supply.
Correct Answer:
Verified
Correct Answer:
Verified
Q143: Just as the aggregate-demand curve slopes downward
Q144: Other things the same, if there is
Q145: An increase in inflation expectations shifts the
Q146: The government of Blenova considers two policies.
Q147: If there were a favorable supply shock
Q149: Does a more steeply sloped Phillips curve
Q150: A policy change that reduces the natural
Q151: If people correctly anticipate that inflation will
Q152: The analysis of Friedman and Phelps argues
Q153: If expected inflation falls but actual inflation