Ask Question
3 February, 18:05

Which of the following changes will increase short-run output? Group of answer choices an increase in the parameter governing how aggressively monetary policy responds to inflation a decrease in the parameter governing how aggressively monetary policy responds to inflation an increase in the target rate of inflation a decrease in the target rate of inflation

+3
Answers (1)
  1. 3 February, 20:00
    0
    The correct answer is letter "C": an increase in the target rate of inflation.

    Explanation:

    According to the Aggregate Demand Formula (Consumer Spending + Investment Spending + Government Spending + Exports-Imports) changes in its curve will be caused by changes in the inflation rate. The fact that the target increases will produce the interest rate to decrease and, as a result, the output will move in the opposite direction.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following changes will increase short-run output? Group of answer choices an increase in the parameter governing how ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers