A Common Explanation for the Behavior of the Short-Run U

question 126

Multiple Choice

A common explanation for the behavior of the short-run U.S. Phillips curve in 2009 and 2010 is that, over the previous 20 or so years, the Federal Reserve had

• A)established a lot of credibility in its commitment to keep inflation at about 2 percent.
• B)established a lot of credibility in its commitment to keep inflation at about 5 percent.
• C)failed to establish significant credibility in its announced intent to keep inflation at about 2 percent.
• D)failed to establish significant credibility in its announced intent to keep inflation at about 5 percent.

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Definitions:

Posting Reference

An identifier or code that links journal entries to the relevant accounts in the general ledger, facilitating tracking and auditing.

Journal

A record where all of a company's financial transactions are initially documented in chronological order.

Posting Process

The act of transferring journal entries to their respective accounts in the ledger.

Journal Page Number

A reference number used in accounting to denote the specific page in a journal where transactions are recorded.