At short-run equilibrium inflation ________ and output equals ________.
A. equals the value determined by part expectations and pricing decisions; the level of short-run equilibrium output consistent with that inflation rate
B. is stable; the level of output consistent with zero inflation
C. equals the value consistent with potential output; the level of output consistent with zero inflation
D. equals the value determined by past expectations and pricing decisions; potential
Answer: A
You might also like to view...
The natural unemployment rate is higher if
A) many of the new jobs created require skills possessed by the available labor. B) there are fewer two-income households. C) unemployment benefits become more generous. D) efficiency wages are lower. E) there is a decrease in the working-age population.
If you buy something with a gift card that you would never buy with your own money, you are exhibiting ______ behavior.
a. anchoring b. compartmentalizing c. framing d. gambling