The Term for a Pattern of Initially Sluggish Adjustment of the Equilibrium

question 195

Multiple Choice

The term for a pattern of initially sluggish adjustment of the equilibrium price level to a change in aggregate demand followed by a greater adjustment in the future is

• A) real-business-cycle inflation dynamics.
• B) New Keynesian inflation dynamics.
• C) passive price dynamics.
• D) active price dynamics.

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Definitions:

Adverse Possession

A legal principle under which a person who occupies land belonging to another for an extended period may be entitled to claim legal title to that land.

Stream Of Commerce

The flow of goods and services through the supply chain from producers to consumers.

Assignment

The act of transferring rights, interests, or obligations from one party to another under contractual agreements.

Sublease

A tenant’s transfer of all or part of the leased premises to a third person for a period shorter than the lease term.