Starting from Long-Run Equilibrium, a Negative Inflation Shock Results in a Short-Run

question 100

Multiple Choice

Starting from long-run equilibrium, a negative inflation shock results in a short-run equilibrium with ___ inflation and ____ output.

• A)higher; higher
• B)higher; lower
• C)higher; potential
• D)lower; lower

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A threshold in hypothesis testing that determines the probability of rejecting a true null hypothesis, often denoted as alpha.