The Main Determinant of How Quickly Expected Inflation Adjusts to Changes

question 92

Multiple Choice

The main determinant of how quickly expected inflation adjusts to changes in monetary policy is

• A)the slope of the Phillips curve.
• B)the slope of the short-run aggregate supply curve.
• C)the credibility of the central bank.
• D)the degree of indexation in the economy.

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Definitions:

U.S.GAAP

United States Generally Accepted Accounting Principles, a set of accounting standards and principles used to prepare financial statements in the U.S.

Economic Events

Transactions and occurrences that affect the financial position and performance of a business.

Accounting Numbers

Figures that represent the financial performance and position of a company, including income, expenses, assets, and liabilities.

IFRS

Stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide companies in preparing financial statements on a global basis.