Some Critics of the ADI-IA Model Have Noted That the Economy's

question 198

Multiple Choice

Some critics of the ADI-IA model have noted that the economy's potential output could occur at any point over a range of possible outputs,rather than at a single level of output.If the critics are right,then

• A) accelerating inflation would be compatible with many output levels.
• B) decelerating inflation would be compatible with many output levels.
• C) inflation stability would be compatible with many output levels.
• D) inflation stability would be compatible with only a single output level.
• E) inflation stability would be compatible with two separate output levels.

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Definitions:

Original Bundle

A combination of goods and services initially selected by a consumer or economic agent, before considering trades or changes.

Price Rise

An increase in the monetary value of goods or services over time.

Original Bundle

Describes a combination of goods and/or services that an individual initially chooses based on their preferences and income constraints.

Price Rise

An increase in the cost of goods or services, often reflecting factors like inflation, increased production costs, or higher demand.