The inflation adjustment (IA) line is
A) downward-sloping.
B) upward-sloping.
C) horizontal at the current rate of inflation.
D) vertical at the economy's potential output.
E) vertical at the economy's actual output.
Correct Answer:
Verified
Q69: The long-run aggregate supply line is
A) downward-sloping.
B)
Q70: Moderate expected inflation leads to _ increases
Q71: High expected inflation leads to _ increases
Q72: When a recessionary gap exists,actual output _
Q73: A vertical line showing the economy's potential
Q75: Low expected inflation leads to _ increases
Q76: When actual output exceeds potential output,there is
Q77: A low rate of expected inflation tends
Q78: When no output gap exists,actual output _
Q79: A horizontal line showing the current rate
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