Multiple Choice
Suppose expected inflation is fixed at zero and we are on the SP curve with p = 2 and Y = 104.If nominal GDP rises (again) by 6 percent
A) the SP curve must now shift up.
B) we must move off the SP curve to where p = 6 and Y = 104.
C) we must slide northeast further up the SP curve.
D) we must move off the SP curve to where p = 2 and Y = 110.
Correct Answer:
Verified
Correct Answer:
Verified
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