Multiple Choice
In the dynamic model of aggregate demand and aggregate supply, if the central bank chooses a large value of θπ and a small value of θY, then the DAD curve will be relatively _____, and supply shocks will have relatively _____ impacts on inflation than output.
A) flat; larger
B) flat; smaller
C) steep; larger
D) steep; smaller
Correct Answer:
Verified
Correct Answer:
Verified
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