A reduction in the central bank's inflation target shifts the dynamic aggregate demand curve to the left resulting in:
A. higher current output and higher inflation.
B. lower current output and higher inflation.
C. higher current output and lower inflation.
D. lower current output and lower inflation.
Answer: D
You might also like to view...
As monthly rain levels rise, golf course revenue falls because casual golfers prefer to stay dry. This is an example of:
A. scarcity. B. incentives. C. normative analysis. D. correlation and causation.
How does opportunistic behavior affect a contract?
When the supply of blueberries increases while the demand for blueberries also increases, the equilibrium ________ of blueberries will definitely ________, ceteris paribus.
A. price; increase B. price; decrease C. quantity; increase D. quantity; decrease
If on Tuesday the perceived price of studying for an exam is $4 per hour but on Saturday the perceived price of studying for an exam is $10, the law of demand predicts
A) more studying on Saturday and less on Tuesday. B) more studying on Tuesday and less on Saturday. C) the same amount of studying on Tuesday and Saturday. D) no studying on Tuesday or Saturday.