Unlike an Upward Inflation Shock,a Negative Shock to Potential Output

If the central bank moves to reduce the inflation rate in an economy that initially is at a long-run equilibrium,then,in the short run,the inflation rate _________ and,in the long run,the inflation rate __________. A) increases;increases B) decreases;decreases C) does not change;increases D) does not change;decreases E) increases;decreases

The short-run effects of a monetary "tightening" are ________ output,_________ unemployment,and _________ inflation. A) lower;unchanged;higher B) lower;lower;lower C) lower;higher;no change in D) higher;lower;lower E) unchanged;higher;no change in