Author Question: In the short-run, higher prices can be caused by: a. A decrease in aggregate supply, an increase in ... (Read 97 times)

sc00by25 · **on:** Jun 30, 2018

In the short-run, higher prices can be caused by:
a. A decrease in aggregate supply, an increase in aggregate demand, or both.
b. A decrease in aggregate supply, decrease in aggregate demand, or both.
c. An increase in aggregate supply, increase in aggregate demand, or both.
d. An increase in aggregate supply, a decrease in aggregate demand, or both.
e. Central bank actions only.

Question 2

What is the exact nominal interest rate, when the real interest rate is 5 and the expected inflation rate is 15?
a. 5
b. 10
c. 20.00
d. 20.75
e. 25.5