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Question
A temporary supply shock that raises prices will cause the real interest rate toA. rise in both the short and long runs.
B. rise in the short run but not in the long run.
C. fall in both the short and long runs.
D. fall in the short run but not in the long run.
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
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B. U.S. Treasury.
C. Federal Reserve System.
D. Bureau of Monetary Affairs.
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A. balanced budgets.
B. rapidly growing money supplies.
C. falling money supplies.
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B. banks.
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Banks, savings and loan associations, mutual savings banks, and credit unions
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Which of the followings does NOT describe the goods market in the ISLM model?
A. consumption function
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C. government spending and tax
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Q:
An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________.
A. IS; right
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Q:
A policy in which the money supply is kept growing at a constant rate regardless of the state of the economy is
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Q:
The Lucas critique indicates that
A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
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If the economy suffers a permanent negative supply shock because there is an increase in regulations that permanently reduce the level of potential output, then
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B. the long-run aggregate supply curve shifts leftward.
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Q:
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Q:
Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
Q:
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