Inflation Inertia Is the Result of the Behavior of ________

question 149

Multiple Choice

Inflation inertia is the result of the behavior of ________ and the existence of ________.

• A)the central bank; automatic stabilizers
• B)real and nominal interest rates; an output gap
• C)autonomous aggregate demand; the Fed's policy reaction function
• D)inflation expectations; long-term wage and price contracts

---

Definitions:

Killing Power

The effectiveness or capability of a substance or action to cause death.

Formaldehyde

A colorless, strong-smelling gas used in various manufacturing processes and as a preservative in medical laboratories.

Germicide

A substance or agent that kills germs, especially pathogenic microorganisms.

Sporicide

An agent specifically formulated to kill spores, which are highly resistant forms of bacteria.