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Other Fields Homework Help Economics Topic started by: valputin on Nov 29, 2015



Title: When the economy suffers a permanent negative supply shock and the central bank responds by changing
Post by: valputin on Nov 29, 2015
When the economy suffers a permanent negative supply shock and the central bank responds by changing the autonomous component of monetary policy to keep inflation at the target inflation rate, then
A) aggregate demand curve shifts leftward.
B) output will be unchanged.
C) output will be at its potential.
D) all of the above.
E) both A and C.


Title: Re: When the economy suffers a permanent negative supply shock and the central bank responds by chan
Post by: Meela on Nov 30, 2015
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Title: Re: When the economy suffers a permanent negative supply shock and the central bank responds by changing
Post by: valputin on Dec 14, 2015
This is great!


Title: Re: When the economy suffers a permanent negative supply shock and the central bank responds by changing
Post by: Meela on Dec 14, 2015
Great! Happy to be right :p