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Author Question: Stagflation occurs when short-run aggregate supply decreases. Indicate whether the statement is ... (Read 29 times)

Frost2351

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on: Jun 29, 2018
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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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

C


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