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Author Question: In the short run, if current output remains persistently above potential ________. A) inflation ... (Read 106 times)

pragya sharda

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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.


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milbourne11

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


pragya sharda

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Reply #2 on: Jun 30, 2018
Thank you


milbourne11

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Reply #3 on: Jun 30, 2018
No problemo


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