Author Question: Stagflation occurs when short-run aggregate supply decreases. Indicate whether the statement is ... (Read 18 times)

Frost2351

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Stagflation occurs when short-run aggregate supply decreases.
 
  Indicate whether the statement is true or false

Question 2

According to real business cycle models
 
  A) the economy is normally operating below the natural rate of unemployment.
  B) unexpected changes in monetary policy are the major source of fluctuations in real GDP.
  C) the economy is normally at potential GDP.
  D) the long-run Phillips curve is negatively sloped.



Silverbeard98

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Answer to Question 1

TRUE

Answer to Question 2

C



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