A decrease in the inflation target by the central bank would:
A. cause the dynamic aggregate demand curve to shift to the right.
B. cause the dynamic aggregate demand curve to shift to the left.
C. have no impact on the positioning of the dynamic aggregate demand curve.
D. be reflected by a movement down and along the existing dynamic aggregate demand curve.
Answer: B
Economics
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A) income B) consumer expectations C) consumer preferences D) prices of other goods
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Refer to Figure 3-2. A decrease in the price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
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