Of the Five Endogenous Variables in the Dynamic Model of Aggregate

question 33

Multiple Choice

Of the five endogenous variables in the dynamic model of aggregate demand and aggregate supply, which are the nominal variables that will change in long-run equilibrium if the central bank changes its inflation target?

• A) Y_t, r_t, and i_t
• B) Y_t, i_t, and E_t \(\pi\)_{t + 1}
• C) \(\pi\)_t, i_t, and E_t \(\pi\)_{t + 1}
• D) r_t, \(\pi\)_t, and i_t

---

Definitions:

Promoting Health

Activities or practices focused on encouraging and maintaining health and well-being, rather than just treating disease.

Learning New Skills

The process of acquiring new abilities or knowledge through practice, study, or experience.

Cognitive Development

The process by which an individual learns, acquires knowledge, and develops the ability to reason and understand their world.

Formal Operations

The final stage of cognitive development (according to Piaget), characterized by the ability to think abstractly, reason logically, and manage problems systematically.