Multiple Choice
If monetary policymakers respond aggressively to current inflation above the target inflation rate, the:
A) monetary policy reaction curve would be flat.
B) dynamic aggregate demand curve would have a steep slope.
C) monetary policy reaction curve would have a positive and steep slope.
D) dynamic aggregate demand curve would shift rightward.
Correct Answer:
Verified
Correct Answer:
Verified
Q79: The dynamic aggregate demand curve shifts as
Q80: Increases in potential output shift:<br>A) the long-run
Q81: "Official" recessions in the United States are
Q82: If the economy's output response to changes
Q83: If monetary policymakers do not want an
Q85: Increases in productivity result in:<br>A) higher inflation
Q86: Describe the immediate short-run effect to the
Q87: Almost all recessions identified by the NBER
Q88: Neutralizing demand shocks is easier in theory
Q89: Discuss the short- and long-run output responses