question archive Suppose that an inflation shock which moves the economy from Point c to Point a only lasts for one period
Suppose that an inflation shock which moves the economy from Point c to Point a only lasts for one period
Subject:EconomicsPrice: Bought3
Suppose that an inflation shock which moves the economy from Point c to Point a only lasts for one period. The self-correcting nature of the AD and AS model implies that: O In the long-run the economy will remain at Point a. In the long-run the economy will move to Point b. O In the long-run the economy will move to Point c. The shock will produce a permanently higher rate of inflation. O The shock will produce a permanently lower rate of inflation.
