Multiple Choice
When the economy is hit by a temporary negative supply shock and the central bank does not respond by changing the autonomous component of monetary policy,then in the long run
A) inflation will be lower.
B) output will be at its potential.
C) output will be lower.
D) inflation will be unchanged.
E) both B and D.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: When the economy suffers a permanent negative
Q2: If the economy suffers a permanent negative
Q4: If aggregate output is below the natural
Q5: Which of the following is least likely
Q6: The time it takes for the policy
Q7: Liquidity provision and asset purchase may not
Q8: Because policies in the United States were
Q9: The implementation lag is<br>A)the time it takes
Q10: When output is below potential and the
Q11: The data lag is<br>A)the time it takes