At long-run equilibrium inflation ________ and output equals ________.
A. equals the value determined by part expectations and pricing decisions; the level of short-run equilibrium output consistent with that inflation rate
B. equals the value consistent with potential output; the level of output consistent with zero inflation
C. is stable; potential
D. equals the value determined by past expectations and pricing decisions; potential
Answer: C
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A commercial bank has required reserves of $60 million and the reserve ratio is 20%. How much are the commercial bank's checkable-deposit liabilities?
A. $1,200 million B. $120 million C. $300 million D. $900 million
When interest rates in the bond market go up
A) the price of existing bonds goes u
Use the above figure. A rightward shift of the demand curve, ceteris paribus, would result in
A) dollar depreciation. B) dollar appreciation. C) euro depreciation. D) reducing the equilibrium quantity of euros.
The quantity theory of money can explain which of the following?
A. If %?Y and the %?V = 0; the %?P > %?M B. If the %?Y > 0 and the %?V = 0; the %?P < %?M C. If the %?P > 0; the %?M must also be > 0 D. If the %?V = 0 and the %?M = 0; the %?P must be = 0