If a Positive Inflation Shock Occurs and Monetary Policymakers Do

question 100

Multiple Choice

If a positive inflation shock occurs and monetary policymakers do not change the inflation target:

• A) output will eventually return to potential output and inflation will equal the inflation target.
• B) output will eventually rise above potential output while inflation will equal the inflation target.
• C) output will eventually fall below potential output while inflation will equal the inflation target.
• D) output will eventually return to potential output but inflation will exceed the inflation target.

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Definitions:

Floating

In programming and web design, it refers to an element's ability to move to the left or right side of its container, allowing other elements to wrap around it.

Bevel

An edge that has been cut at a slant, often used in design to add depth or to soften the edges of objects.

Shadow

A dark area or shape produced by an object coming between rays of light and a surface, also used in graphic and web design to give depth or highlight elements.

Presenter View

A display mode in presentation software that shows the current slide, notes, and a preview of the next slide to the presenter.