Multiple Choice
At short-run equilibrium,inflation ___________ and actual output is equal to __________.
A) equals the value determined by past expectations and pricing decisions;potential output
B) equals the value determined by past expectations and pricing decisions;the level of output consistent with that inflation rate
C) equals the value consistent with potential output;the level of output consistent with zero inflation
D) is stable;potential output
E) is stable;the level of output consistent with zero inflation
Correct Answer:
Verified
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