Multiple Choice
If prices were to adjust quickly:
A) output gaps would be persistent.
B) output gaps would disappear quickly.
C) inflation would adjust slowly.
D) the short-run aggregate supply curve would not shift.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q2: Comparing monetary and fiscal policy:<br>A) fiscal policy
Q4: Explain the view called real business cycle
Q12: Policymakers can neutralize:<br>A) supply shocks, but only
Q29: Fiscal policy can act just like monetary
Q44: Why do negative supply shocks pose a
Q50: Stabilization policy refers to the use of:<br>A)
Q51: If an economy is initially at a
Q80: Increases in potential output shift:<br>A) the long-run
Q96: Which of the following statements is incorrect?<br>A)
Q99: Why do increases in potential output allow