If the Central Bank Moves to Reduce the Inflation Rate

question 159

Multiple Choice

If the central bank moves to reduce the inflation rate in an economy that initially is at a long-run equilibrium,then,in the short run,output _________ and inflation _________.

• A) decreases;increases
• B) decreases;does not change
• C) increases;increases
• D) increases;decreases
• E) increases;does not change

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