What is the key message of the Impossible Trinity?
a. The Impossible Trinity claims that there is a tradeoff between inflation, GDP growth, and unemployment.
b. The Impossible Trinity claims that the three key macroeconomic markets can not be in equilibrium simultaneously.
c. The Impossible Trinity states that low inflation, low unemployment, and a balanced budget can not be attained at the same time.
d. The Impossible Trinity states that no country can have a fixed exchange rate, monetary independence, and free and open international trade and capital flows at the same time.
Question 2
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Aggregate demand rises, but aggregate supply does not change.
b. Aggregate demand falls, and aggregate supply rises.
c. Aggregate demand and aggregate supply rise.
d. Aggregate demand and aggregate supply fall.
e. None of the above.
Reasons for Denied Claims and Solutions
Remy Shand - Take a Message
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