During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP, the AD curve will ________ and the AS curve will ________
A) not shift; shift rightward continuously
B) shift rightward continuously; shift rightward continuously
C) shift rightward once; shift rightward continuously
D) shift rightward continuously; not shift
E) shift rightward continuously; shift leftward continuously
E
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The ECB's focus on restraining inflation is, in large part, a result of:
A) Europe's experience with inflation during the 1960s. B) Germany's experience with hyperinflation during the period between the first and second world wars. C) the ECB's distrust of some of its smaller member countries (e.g., Finland, Portugal). D) its monetary policy having no effect on economic growth.
Scarcity arises because
A) resources are finite and are inadequate to meet all human wants. B) production of goods and services is always slow. C) companies are slow to explore for new resources. D) a large number of people live in poverty.