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

question 147

Multiple Choice

Starting from a long-run equilibrium,an upward inflation shock results in a short-run equilibrium with ________ inflation and ________ output.

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

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Definitions:

Z-scores

A measure that describes a value's relationship to the mean of a group of values, expressed in units of standard deviation.

Standard Normal Distribution

A probability distribution that has a mean of 0 and a standard deviation of 1, representing a standardized version of the normal distribution.

Less Than

A mathematical expression indicating that one quantity is smaller than another.

Z-scores

Standardized scores that indicate the number of standard deviations a data point is from the mean.