Draw Two SP Curves Intersecting LP;call the Upper Intersection Point

question 97

Multiple Choice

Draw two SP curves intersecting LP;call the upper intersection point A and the lower point B.The Fed promises to reduce inflation while maintaining natural unemployment.If the public believes the Fed,the economy moves from ________.Then if the Fed turns out to be time-inconsistent,breaking its promise and trading off ________ inflation for lower unemployment,the public revises the way it forms inflation expectations so that in the long run the economy stays at ________.

• A)A to B,lower,B which is superior to A
• B)A to B,higher,A which is inferior to B
• C)A to B,lower,A which is superior to B
• D)B to A,higher,B which is superior to A
• E)B to A,lower,B which is inferior to A

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Definitions:

Polypore

A type of fungus with pores or tubes on the underside, which releases spores.

Microporous Products

Products designed with very small pores that allow for filtration, absorption, or other interactions with particles and fluids at the microscopic level.

Competition

The activity or condition of striving to gain or win something by defeating or establishing superiority over others.

Consolidation

The process of combining multiple entities, assets, or financial statements into a single entity.