In the Long Run, Sustained Inflation Is Due to

question 20

Multiple Choice

In the long run, sustained inflation is due to

• A) a one-time increase in money growth.
• B) a continuous increase in the money growth rate.
• C) a continuous increase in aggregate demand.
• D) the rising price of oil.

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Definitions:

Pythagoras

An ancient Greek philosopher and mathematician who is credited with significant developments in mathematics, astronomy, and the theory of music.

Numbers

Abstract entities that represent quantities, positions, or values in mathematics, enabling the measuring, labeling, and ordering of objects and ideas.

Trees and Tables

An analogy often used to explain philosophical concepts, contrasting natural objects like trees with man-made objects like tables to explore ideas about reality and perception.

Myth of the Cave

An allegory presented by Plato, depicting a group of people who have lived chained to the wall of a cave all of their lives, facing a blank wall, unable to see the reality behind them.