Multiple Choice
Graphically inflation shocks shift the ________ and shocks to potential shift the ________.
A) aggregate demand curve; long-run aggregate supply line
B) aggregate demand curve; short-run aggregate supply line
C) short-run aggregate supply line; long-run aggregate supply line
D) long-run aggregate supply line; short-run aggregate supply line
Correct Answer:
Verified
Correct Answer:
Verified
Q69: Graphically long-run equilibrium occurs at the intersection
Q70: At a short-run equilibrium output equals _,
Q71: When the Federal Reserve increases its target
Q72: Because decreases in inflation increase planned spending
Q73: A downward shift in the Fed's policy
Q75: The aggregate demand curve is downward sloping
Q76: As inflation decreases, households become _ uncertain
Q77: When inflation equals the value determined by
Q78: Starting from long-run equilibrium, a large decrease
Q79: The output losses from an adverse inflation