The short-run refers to a period a. of a few days. b. when ...

[berenicecastro]

The short-run refers to a period
 
  a. of a few days.
  b. when prices and wages cannot fully adjust.
  c. of a few years.
  d. during which trend cannot change.
  e. of analysis used in the classical model

Question 2

Given the accelerationist Phillips curve  = - 0.3 (U - 6 ) + , suppose that inflation in the preceding period was 3 percent, unemployment is 6 percent, and there is a price shock of 2 percent. The current inflation rate is ________.
 
  A) 3 percent
  B) 0.2 percent
  C) 5 percent
  D) 1 percent
  E) none of the above

[Loise Hard]

Answer to Question 1

B

Answer to Question 2

C

[berenicecastro]

Thank you

[Loise Hard]

No problemo