An Inflation Shock Is

Multiple Choice

An inflation shock is

A) the level of inflation consistent with output in a recessionary gap.
B) the level of inflation consistent with output in an expansionary gap.
C) a sudden change in the normal behaviour of inflation,unrelated to the nation's output gap.
D) a change in the inflation rate generated by excessive aggregate demand.
E) a change in inflation brought about by changes in inflation expectations and pricing decisions.