If the Fed Were to Announce That Fighting Inflation Is

question 21

Multiple Choice

If the Fed were to announce that fighting inflation is not a high priority for the immediate future ________.

• A)households might expect higher inflation
• B)the short run aggregate supply would shift upwards
• C)firms might begin raising their prices to keep up with expected inflation
• D)all of the above
• E)none of the above

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Definitions:

Subcutaneous

Situated or applied under the skin.

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing blood capillaries, nerve endings, sweat glands, and hair follicles.

Epidermis

The outer protective layer of the skin that produces new skin cells.

Presbyopia

A condition associated with aging in which the eye's lens loses its ability to focus, making it hard to see objects up close.