A devaluation is a reduction in the official value of a currency.

When supply is perfectly inelastic, the supply curve is

A) upward sloping but not a straight line. B) vertical. C) downward sloping. D) horizontal. E) a straight line with a 45 degree slope that goes through the origin.

In the long run, persistent inflation in the United States is caused by

A. rightward shifts in the long-run aggregate supply curve and the leftward shift of the aggregate demand curve. B. a faster rightward shift of the aggregate demand curve than the rightward shift of the long-run aggregate supply curve. C. leftward shifts in both the long-run aggregate supply curve and in the aggregate demand curve. D. leftward shifts in the aggregate demand curve while the position of the long-run supply curve is unchanged.