The economy is initially in long-run equilibrium. The AD curve shifts to the right and the price level rises. Assuming that the economy is self-regulating, the SRAS curve will shift to the left and the price level will rise even further. If the price level now remains constant, what have we witnessed?
A) one-shot demand-induced inflation
B) continued demand-induced inflation
C) one-shot supply-induced inflation
D) one-shot inflation that was partly demand-induced and partly supply-induced
E) continued supply-side inflation
A
You might also like to view...
Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:
A. a productivity slowdown accompanied by a decrease in the labor supply. B. skill-biased technological change. C. globalization. D. a productivity slowdown accompanied by an increase in the labor supply.
Linesha, a college student working part-time received a wage increase. An avid movie buff, she increased her purchases of Blu-ray discs and reduced her purchases of DVDs. Based on this information
A) DVDs and Blu-ray discs are substitutes. B) the cross-price elasticity between DVDs and Blu-ray discs is negative. C) DVDs and Blu-ray discs are normal goods. D) Blu-ray discs are normal goods and DVDs are inferior goods.
________ theory relates the quantity of money and monetary policy to changes in aggregate economic activity and inflation
A) Monetary B) Fiscal C) Financial D) Systemic
Which of the following individuals was known for as an early contributor to behavioral economics?
a. Jeremy Bentham b. Herbert Simon c. Milton Friedman d. Ben Bernanke