Multiple Choice
Inflation will increase when
A) Growth in aggregate demand exceeds growth in potential output and the level of output is above the level of potential output
B) Growth in aggregate demand falls short of growth in potential output and the level of output is above the level of potential output
C) Growth in aggregate demand exceeds the growth in potential output and the level of output is below the level of potential output
D) Both a and b
Correct Answer:
Verified
Correct Answer:
Verified
Q1: To stimulate aggregate demand, the Fed could<br>A)
Q2: Inflation would rise if<br>A) Actual output exceeded
Q3: If disinflation is taking place<br>A) The level
Q4: Outside the United States, the goal of
Q5: If growth in the labor force is
Q6: Setting the stage for the Great Moderation
Q7: The Fed (and many other central banks)
Q8: The statutory goal of monetary policy in
Q9: If actual output were to grow at
Q11: If actual output equals and grows with