Most economists believe that in the short run
a. real and nominal variables are determined independently and that money cannot move real GDP away from its long-run trend.
b. real and nominal variables are determined independently but that money can temporarily move real GDP away from its long-run trend.
c. real and nominal variables are highly intertwined but that money cannot move real GDP away from its long-run trend.
d. real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its long-run trend.
d
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If the Fed raises the inflation rate and initially expected inflation does not change, in the short run the unemployment rate ________ the natural unemployment rate, and in the long run the unemployment rate ________ the natural unemployment rate
A) is larger than; equals B) is less than; equals C) is less than; is larger than D) is less than; is less than E) is larger than; is larger than
Critics of the World Bank's analysis of East Asian industrial policies argue that
A) even though growth was faster in the non-targeted industries than it was in the targeted ones, the policies were essential to overall economic growth. B) growth was faster in nearly every targeted industries than it was in the non-targeted ones. C) even though growth was the same in the targeted industries as it was in the non-targeted ones, they would have grown slower without the policies. D) growth was slower in the targeted industries; hence the policies did not work. E) measurements of economic growth are invalid and cannot be used to make comparisons between industries.