This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the short run, if current output remains persistently above potential ________. A) inflation ... (Read 98 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

milbourne11

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


pragya sharda

  • Hero Member
  • *****
  • Posts: 566
Reply #2 on: Jun 30, 2018
Thank you


milbourne11

  • Sr. Member
  • ****
  • Posts: 322
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Skeletal remains from the Sima de los Huesos, Sierra de Atapuerca, Spain. Skeletal remains from the Sima de los Huesos, Sierra de Atapuerca, Spain.
Calcium channels and muscle contraction: (a) Calcium channels open as the action potential travels ... Calcium channels and muscle contraction: (a) Calcium channels open as the action potential travels ...
Short-wavelength flux is reflected by Earth Short-wavelength flux is reflected by Earth
Fogel’s Map of a Potential Water Transport Network for 1890 Fogel’s Map of a Potential Water Transport Network for 1890
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Propagation of an action potential Propagation of an action potential
Video: How does asthma work?And How do you treat asthma?

For a complete list of videos, visit our video library