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:

Amygdala

A region of the brain involved in experiencing emotions, particularly those related to survival, such as fear and aggression.

Impulsiveness

Exhibiting actions based on sudden desires rather than careful thought, showing a lack of deliberation or awareness of potential outcomes.

Perseveration

The repetition of a particular response (such as a word, phrase, or gesture) despite the absence or cessation of a stimulus, often associated with various forms of brain damage or mental illness.

Egocentrism

A lack of ability to separate one's personal perspective from the perspective of others.