At Short-Run Equilibrium Inflation ________ and Output Equals ________

Multiple Choice

At short-run equilibrium inflation ________ and output equals ________.

A) equals the value determined by past expectations and pricing decisions; potential
B) equals the value determined by part expectations and pricing decisions; the level of short-run equilibrium output consistent with that inflation rate
C) equals the value consistent with potential output; the level of output consistent with zero inflation
D) is stable; the level of output consistent with zero inflation