Inflation Inertia Is the Result of the Behavior of ________

question 149

Multiple Choice

Inflation inertia is the result of the behavior of ________ and the existence of ________.

• A)the central bank; automatic stabilizers
• B)real and nominal interest rates; an output gap
• C)autonomous aggregate demand; the Fed's policy reaction function
• D)inflation expectations; long-term wage and price contracts

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