When a price shock has occurred,inflation returns to its pre-shock rate ________.
A)in the period following the price shock
B)in the period when output has returned to its pre-shock rate
C)once the output gap has returned to zero
D)only in the long run
E)none of the above

Question

Quizplus · Accepted Answer

The Answer of When a price shock has occurred,inflation returns to its pre-shock rate ________.
A)in the period following the price shock
B)in the period when output has returned to its pre-shock rate
C)once the output gap has returned to zero
D)only in the long run
E)none of the above

When a Price Shock Has Occurred,inflation Returns to Its Pre-Shock