The Short-Run Equilibrium of Inflation and Real GDP

question 111

Multiple Choice

The short-run equilibrium of inflation and real GDP

• A)depends only on the rate of growth of the money supply.
• B)occurs where expected inflation equals actual inflation.
• C)depends only on the rate of growth of nominal GDP.
• D)None of these.

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Definitions:

Selective Incorporation

A constitutional doctrine that ensures states cannot enact laws that infringe on the rights of citizens that are protected under the Bill of Rights.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, granting citizenship to all persons born or naturalized in the United States, including former slaves, and guaranteeing all citizens equal protection of the laws.

Bill of Rights

The first ten amendments to the U.S. Constitution, guaranteeing fundamental civil rights and liberties.

Alexander Hamilton

A Founding Father of the United States, the first Secretary of the Treasury, and a key figure in the drafting of the Constitution and the establishment of the national financial system.