Inflation in the U.S. economy tends to be:
A. a finite, one-time event resulting from a shock.
B. ongoing, as increases in aggregate demand generally exceed the increases in aggregate
supply.
C. a finite, one-time event as the Fed actively works to eliminate all inflation.
D. ongoing, as aggregate supply is continually shifting to the left.
B. ongoing, as increases in aggregate demand generally exceed the increases in aggregate
supply.
You might also like to view...
In the figure above, the middle fifth of all households receive what share of all income?
A) 10 percent B) 20 percent C) 30 percent D) 40 percent
Which of the following is a reason people choose to hold more cash?
a) Interest rates paid on savings and checking accounts at the bank rise dramatically. b) Consumers have more faith in the stability and safety of the financial system. c) Interest rates paid on savings and checking accounts at the bank are near zero. d) Holding cash becomes less convenient.