In the long run, following a combination of a negative demand shock and a temporary negative supply shock, ________
A) both inflation and output return to the original long-run equilibrium values
B) inflation is permanently increased, while output returns to potential output
C) output returns to potential output, while inflation may be higher or lower than its initial value
D) inflation is permanently reduced, while output returns to potential output
E) none of the above
D
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The total income earned by residents of an economy is known as
A) private disposable income B) gross national product C) gross domestic product D) national income E) none of the above
The criterion introduced by the Supreme Court in 1911 to determine whether a particular action was illegal or legal within the terms of the Sherman Act is called the
A. Interstate Commerce Rule. B. Rule of Reason. C. Clayton Act Rule. D. Federal Trade Commission Rule.
In 2016, the city of Canfield collected $500,000 in taxes and spent $450,000. In 2016, the city of Canfield had a
A. budget surplus of $450,000. B. budget surplus of $50,000. C. budget surplus of $5,000. D. budget deficit of $50,000.
Economic bubbles are created because of inflated (and in the short-term self-fulfilling) expectations of
A. earnings. B. overall economic growth. C. future-asset prices. D. interest rates.