At a short-run equilibrium output equals ________, while at a long-run equilibrium output equals ________.
A. an output level consistent with the inflation rate; potential output
B. the monetary policy reaction function; aggregate demand
C. aggregate demand; the monetary policy reaction function
D. potential output; an output level consistent with the inflation rate
Answer: A
You might also like to view...
Which one of the following industries could be classified as an oligopoly?
A) Tobacco production B) Retailing C Farming D) Fast food restaurants
Stagflation occurs when short-run aggregate supply decreases
Indicate whether the statement is true or false
In Figure 3-7 above, the multiplier for a change in autonomous taxes is
A) 5. B) 4. C) 2.50. D) 1.
Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store it must
a. Decrease the prices on the goods sold in the store b. Decrease the parking rates c. All of the above d. None of the above