Suppose Most People Had Anticipated That Inflation Would Increase by 10

Multiple Choice

Suppose most people had anticipated that inflation would increase by 10% in the coming year because the Central Bank would increase the money supply by 10%.Instead,the Central Bank increases the money supply by only 5%.In the short run,this would cause actual output to be ________ full-employment output and prices to increase by ________ 5%.

A) above;more than
B) above;less than
C) below;more than
D) below;less than