In new Keynesian theory, the pattern of inflation exhibited by an economy with growing aggregate demand known as inflation dynamics is
A) initially sluggish upward adjustment of the price level and inflation in response to higher aggregate demand followed by higher inflation in the future.
B) initially sluggish downward adjustment of the price level and inflation in response to higher aggregate demand followed by lower inflation in the future.
C) initially speedy upward adjustment of the price level and inflation in response to higher aggregate demand followed by lower inflation in the future.
D) initially speedy upward adjustment of the price level and inflation in response to higher aggregate demand followed by higher inflation in the future.
A
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All of these factors create economies of scale, except
a. Specialization and Division of Labor b. Technological Factors c. Increase in advertisement costs d. Quantity discounts
One of the functions of the Federal Reserve System is the
a. issuance of federal government bonds b. collections of tax revenues from banks c. spending of federal funds on construction projects d. manufacturing of coins e. clearing of checks between banks located in different parts of the country