Starting from long-run equilibrium, an adverse inflation shock results in a short-run equilibrium with ________ inflation and ________ output.
A. higher; higher
B. higher; potential
C. lower; lower
D. higher; lower
Answer: D
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
In 2007 a company sold 35,000 drones at $150 each. In 2008 the same company sold 40,000 drones at $170 each. This information suggests that
A. The price of drones increased because the costs of production increased from 2007 to 2008. B. From 2007 to 2008, the demand curve for drones was upward-sloping because of improved technology. C. The supply of drones increased from 2007 to 2008. D. The demand for drones increased from 2007 to 2008.
Describe how financial innovation has affected the demand for money
What will be an ideal response?
If expectations are rational, forecasting errors are pure random numbers.
Answer the following statement true (T) or false (F)