Author Question: When a price shock has occurred, inflation returns to its pre-shock rate ________. A) in the ... (Read 71 times)

bucstennis@aim.com · **on:** Jun 30, 2018

When a price shock has occurred, inflation returns to its pre-shock rate ________.

A) in the period following the price shock
B) in the period when output has returned to its pre-shock rate
C) once the output gap has returned to zero
D) only in the long run
E) none of the above

Question 2

New classical economics

a. resulted from the high inflation and unemployment of the 1970s.
b. developed in an era of high inflation and unemployment during the 1970s.
c. resulted from the dissatisfaction associated with the prevailing Keynesian orthodoxy.
d. Both b and c.
e. all of the above.