When the economy is hit by a negative demand shock and the central bank pursues policies to increase aggregate demand to its initial level, then
A) inflation will be lower.
B) output will be at its potential.
C) output will be lower.
D) inflation will be unchanged.
E) both B and D.
E
Economics
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A. A few firms. B. Many firms. C. Substantial market power. D. High barriers to entry.
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Explain why the European exchange rate mechanism (ERM) ran into problems in the 1990s
What will be an ideal response?
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A car's real cost is its opportunity cost. Opportunity cost is determined by
A. relative prices. B. the price of the car. C. wealth. D. the prices of the goods that are compliments to a car.
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