19. Supply-side inflation is best illustrated by a O a. Rightward shift in the aggregate demand curve. O b. Leftward shift in the aggregate demand curve. O . Rightward shift in the aggregate supply curve. O d. Leftward shift in the aggregate supply curve. O e. Simultaneous rightward shift in the aggregate supply curve and a leftward shift in the aggregate demand curve.

19. Supply-side inflation is best illustrated by a O a. Rightward shift in the aggregate demand curve. O b. Leftward shift in the aggregate demand curve. O . Rightward shift in the aggregate supply curve. O d. Leftward shift in the aggregate supply curve. O e. Simultaneous rightward shift in the aggregate supply curve and a leftward shift in the aggregate demand curve.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Measuring The Cost Of Living

Section: Chapter Questions

Problem 9PA

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Similar questions

Which of the following shifts in aggregate demand and short-run aggregate supply would cause an unambiguous increase in inflation? Select one: O a. A decrease in AD and an increase in SRAS O b. No change in AD and an increase in SRAS O c. An increase in AD and an increase in SRAS d. An increase in AD and a decrease in SRAS O e. A decrease in AD and a decrease in SRAS
The phrase that inflation is a "monetary phenomenon" means... O a. Increases in the price level are always associated with increases in the money supply. O b. Only an increase in the money supply can start a period of inflation. Oc A continuous rise in prices is possible only with C. continuing increases in the money supply. O d. Repeated supply shocks cannot drive up prices if there is no monetary validation. O e The price level cannot rise without an increase in the money supply.
Actual inflation is the sum of three separate components: .. O a. Accelerated, expected and output gap inflation. O b. Validated, expected and output gap inflation. O c. Output gap, expected and supply-shock inflation. O d. Accelerated, demand and supply inflation. O e. Output gap, wage-push and demand inflation.
Which of the following will increase our current inflation rate t? None of the answers are correct O a. O b. A beneficial cost shock (positive supply shock) O c. A recessionary gap in period t-1 O d. tt-1
The short-run aggregate supply curve has: O A. a positive slope because as the inflation rate increases, so does the quantity of output supplied. OB. a positive slope because as the inflation rate increases, the quantity of output supplied decreases. C. a negative siope because as the inflation rate increases, the quantity of output supplied decreases. O D. a negative slope because as the inflation rate increases, so does the quantity of output supplied.
A constant inflation rate is shown with aggregate demand shifting rightward O A. faster than the aggregate supply shifts leftward. B. at the same rate as the aggregate supply shifts rightward. C. faster than the aggregate supply shifts rightward. D. with no shifts in aggregate supply. O E. at the same rate as the aggregate supply shifts leftward.
Why could inflation be persistent in times of output gaps? O a. Because of inflation expectations O b. Because of wage contracts that were signed some time ago O c. Because of menu costs in adjusting prices frequently O d. All of the answers are correct
QUESTION 2 The interaction of demand-pull and cost-push inflation will result: O a. in permanently lower output and prices O b. in permanently higher output and prices Oc. in the same output and lower prices Od. in the same output and higher prices
Inflation VPC Y = £200 billion Output Figure 12 Current and equilibrium output In Figure 12 the economy's current output is £200 billion and the equilibrium level of output is shown by the position of the Vertical Phillips Curve (VPC). Which of the following policies could be adopted to achieve a zero output gap? (Choose one or more answers.) Select one or more: O A. An increase in income tax. O B. A quantitative easing initiative. O C. An increase in interest rates. O D. A cut in Value Added Tax. MacBook DII DD F9 000 000 F8 F7 F6 F4 F5
10. Which of the following statements is true? a Cost-push inflation occurs as prices rise because of a rise in per-unit cost of production (unit cost = total cost/units of output). With cost-push inflation, prices rise but output falls. b Rising costs reduce profits and the amount of output firms are willing to supply at the current price level. As a result, the economy’s production of goods and services declines and the price level rises. c Supply shocks have been the major source of cost-push inflation. Supply shocks occur when there are dramatic increases in the price of raw materials or energy. d All of the above. e Only a) and b)
Chapter 12: Aggregate Demand II: Applying the IS-LM Model Question: In the IS-LM model, changes in taxes affect aggregate demand via: O a. the interest rate. O b. government spending. C. investment. Od Money supply consumption.
As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates Select one: O a. prices for food and fuel grew more rapidly than prices for other goods. O b. prices for food and fuel grew less rapidly than prices for other goods. c. hyperinflation. O d. the underlying inflation rate was lower than the overall inflation rate. Next page me bere to search