Which of the Following Scenarios Best Describes the Short-Run Model

question 103

Multiple Choice

Which of the following scenarios best describes the short-run model?

• A) \(R _ { t } \uparrow \Rightarrow i _ { t } \uparrow \Rightarrow I _ { t } \downarrow \Rightarrow \tilde { Y } t \uparrow \Rightarrow \Delta \pi _ { t } \downarrow\)
• B) \(i _ { t } \uparrow \Rightarrow R _ { t } \uparrow \Rightarrow I _ { t } \uparrow \Rightarrow \tilde { Y } t \uparrow \Rightarrow \Delta \pi _ { t } \uparrow\)
• C) \(G _ { t } \uparrow \Rightarrow I _ { t } \downarrow \Rightarrow \tilde { Y } _ { t } \uparrow \Rightarrow \Delta \pi _ { t } \downarrow\)
• D) \(\Delta \pi _ { t } \uparrow \Rightarrow \tilde { Y } _ { t } \uparrow \Rightarrow R _ { t } \downarrow \Rightarrow I _ { z } \downarrow\)
• E) None of these answers are correct.

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