Multiple Choice
An increase in the rate of inflation:
A) can only result from increases in aggregate demand.
B) can only result from upward shifts in the short-run aggregate supply curve.
C) will result only if the long-run aggregate supply curve is vertical.
D) can result from shifts in either the dynamic aggregate demand curve or the short-run aggregate supply curve.
Correct Answer:

Verified
Correct Answer:
Verified
Q23: Which of the following statements is most
Q24: In which situation will inflation fall the
Q25: Explain why changes in the central bank's
Q26: Possible explanations that have been offered for
Q27: Monetary policymakers can respond to the impact
Q29: Fiscal policy can act just like monetary
Q30: An increase in the price of oil
Q31: More than once in our history government
Q32: Use the long-run model presented in Chapter
Q33: In which situation would policymakers be unable