A permanent negative supply shock leads to ________ inflation ________
A) higher; in both the short and long runs
B) higher; in the short run but not in the long run
C) lower; in both the short and long runs
D) lower; in the short run but not in the long run
A
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Which of the following events opened the way for rapid and steady technological changes that underpinned modern economic growth?
A) The Agricultural Revolution B) The Industrial Revolution C) The American Civil War D) Demographic transition in the Western world
A change in the relative price of one good versus another will cause a change in marginal product and the allocation of labor resources. When the price of good A increases relative to the price of good B and labor is mobile, the equilibrium real wage in industry A will:
a. rise in terms of good B. b. fall in terms of good B. c. remain the same. d. rise in terms of good A.