Consider the Statement "Inflation Is Everywhere and Always a Monetary

question 37

Multiple Choice

Consider the statement "Inflation is everywhere and always a monetary phenomenon". This statement does not hold true

• A)as long as demand and supply shocks are validated by expansionary monetary policy.
• B)as long as the AD curve is shifting to the right at the same rate as the AS curve is shifting to the left.
• C)if the economy's adjustment process is working effectively.
• D)in industrialized economies.
• E)for temporary bursts of inflation that are not accompanied by a monetary expansion.

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Definitions:

Simple Reflexes

Basic, involuntary motor responses triggered by specific stimuli that are present from birth.

Sensorimotor Substage

The phases within the first stage of Piaget's theory of cognitive development, characterized by the development of sensory and motor abilities in infants.

First Month

Refers to the initial month of a period, which can relate to the life of an infant, the start of a project, or any new beginning.

After Birth

Refers to the period following the birth of an infant, focusing on recovery for the mother and adjustment to life for the newborn.