Multiple Choice
When actual inflation equals the value determined by past expectations and pricing decisions,and output equals the level of short-run equilibrium output consistent with that inflation,the economy is said to be in ________ equilibrium.
A) potential
B) short-run
C) long-run
D) full-employment
E) natural
Correct Answer:
Verified
Correct Answer:
Verified
Q1: An upward shift of the Bank of
Q3: Starting from a long-run equilibrium,immediate or eventual
Q4: Suppose that,in an economy,ADI = 800 +
Q5: When no output gap exists,actual output _
Q6: The long-run self-correcting mechanism that eliminates a
Q7: Suppose that,in an economy,ADI = 800 +
Q8: An increase in government purchases will cause
Q9: The short-run costs of disinflation are<br>A) higher
Q10: Low expected inflation leads to _ increases
Q11: An upward shift in the Bank of