Multiple Choice
A sudden change in the normal behaviour of inflation,unrelated to the nation's output gap,is called
A) short-run equilibrium.
B) long-run equilibrium.
C) an inflation shock.
D) excessive aggregate demand.
E) inflation inertia.
Correct Answer:

Verified
Correct Answer:
Verified
Q20: A decrease in net exports will cause<br>A)
Q21: When the self-correcting mechanism of the ADI-IA
Q22: Suppose that,in an economy,ADI = 5,000 +
Q23: If the aggregate demand (ADI)curve in an
Q24: The development of a new cost-saving technology
Q26: Recessionary output gaps are eliminated through<br>A) rising
Q27: Starting from long-run equilibrium,a large decrease in
Q28: Unlike an upward inflation shock,a negative shock
Q29: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3713/.jpg" alt=" -Based on the
Q30: At short-run equilibrium,inflation _ and actual output