A Major Reason Why It Is So Difficult to Eliminate

question 95

Multiple Choice

A major reason why it is so difficult to eliminate a sustained inflation is that inflationary expectations

• A)make it impossible to reduce aggregate expenditure.
• B)keep shifting the AS curve downward.
• C)make it impossible to stop the rightward shift of the AD curve.
• D)keep shifting the AS curve upward.
• E)cannot be influenced by monetary policy.

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Definitions:

Normal Approximation

Normal approximation is a statistical method that involves approximating a binomial distribution to a normal distribution under certain conditions, facilitating easier calculations.

Positively Skewed

A distribution of data where most values are concentrated on the left side, with a long tail extending to the right.

Standard Error

A statistic that measures the dispersion of sample means around the population mean.

Sample Mean

The arithmetic average of a sample set of data, used to estimate the population mean.