If Monetary Policymakers Do Not Change Their Inflation Target and Aggregate

question 53

Multiple Choice

If monetary policymakers do not change their inflation target and aggregate demand shifts left:

• A) there will be a temporary decrease in output.
• B) potential output will decrease.
• C) there will be an increase in inflation in the long run.
• D) it will result in a permanent reduction in inflation.

---

Definitions:

Precise Number

A numerical value defined with exactitude, without approximation or rounding.

Finished Product

A product that has completed the manufacturing process and is ready for sale or distribution.

SCM

Stands for Supply Chain Management, which involves the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.

Upstream Suppliers

Companies or individuals who provide raw materials, components, or services to other organizations for the production of goods or services.