This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the short run, if current output remains persistently above potential ________. A) inflation ... (Read 90 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
on: Jun 30, 2018
In the short run, if current output remains persistently above potential ________.
 
  A) inflation will rise causing a movement along the aggregate supply curve
  B) expected inflation will rise causing an upward shift of the aggregate supply curve
  C) the aggregate supply curve will shift until current output returns to its potential level
  D) all of the above
  E) none of the above

Question 2

Assuming that money demand is completely interest insensitive, the
 
  a. LM schedule will be horizontal.
  b. LM schedule will be vertical.
  c. IS schedule is vertical.
  d. IS schedule is horizontal.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

milbourne11

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


pragya sharda

  • Hero Member
  • *****
  • Posts: 566
Reply #2 on: Jun 30, 2018
Thank you


milbourne11

  • Sr. Member
  • ****
  • Posts: 322
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Angioplasty. One form is called balloon angioplasty, shown here. A balloon catheter is threaded into Angioplasty. One form is called balloon angioplasty, shown here. A balloon catheter is threaded into
How many potential risks to the health of the embryo and fetus might a mother encounter in an urban ... How many potential risks to the health of the embryo and fetus might a mother encounter in an urban ...
Potential Consequences of Estrogen Loss Related to Menopause Potential Consequences of Estrogen Loss Related to Menopause
All computer systems perform four basic functions: input, processing, storage, and output. All computer systems perform four basic functions: input, processing, storage, and output.
Head with Remains of Painted Decoration Head with Remains of Painted Decoration
Short form of amino acids Short form of amino acids
Video: Angiotensin II - kidneys, adrenal glands and dehydration

For a complete list of videos, visit our video library