In the Equation for the Short-Run Aggregate Supply Curve,π =

question 48

Multiple Choice

In the equation for the short-run aggregate supply curve,π = + γ + ρ,an improvement in the credibility of monetary policy is represented by a change in ________.

• A)expected inflation
• B)the price shock
• C)the sensitivity of inflation to the output gap
• D)the output gap

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Definitions:

Eyelid

Movable fold of skin in front of the eyeball; also called palpebra.

Inferior Rectus

A muscle in the eye that contributes to downward gaze or moving the eye downward.

Directs Pupil

This function, usually involving the iris muscles, regulates the amount of light entering the eye by adjusting the size of the pupil.

Shape Of Tongue

The form and structure of the tongue, which varies and is involved in taste, speech, and food manipulation.