Which of the Following Is an Endogenous Variable in the Dynamic

question 1

Multiple Choice

Which of the following is an endogenous variable in the dynamic model of aggregate demand and aggregate supply?

• A) \(\pi\)_t, inflation
• B) \(\pi _ { \mathrm { t } } ^ { \mathrm { * } }\) central bank's inflation target
• C) \(\rho\), the natural rate of interest
• D) \(\pi\)_{t - 1}, previous period's inflation

---

Definitions:

Acquisition

The process where one company purchases another company or its assets.

Brand Equity

The value and strength a brand possesses that is built over time through consumer experiences, perceptions, and associations relative to competing brands.

Brand Extension

The process of broadening the use of an organization’s current brand to include new products.

Broadening Use

Expanding the scope or application of a product, service, or technology to new areas or purposes.