When a price shock occurs,the inflation rate is affected ________.
A)only in the period of the price shock
B)only in the period after the price shock
C)only if the price shock causes a change in output
D)only if the price shock persists for more than one period
E)none of the above

Question

Quizplus · Accepted Answer

Price shocks can affect the inflation rate in various ways, not limited to a single period, dependent on changes in output, or requiring persistence over multiple periods. Their impact can be immediate, prolonged, and can influence inflation even without changes in output or if they don't persist for more than one period.

When a Price Shock Occurs,the Inflation Rate Is Affected ________