dagram below and answer questions 29 and 30. IS LM (mp 29. Suppose that the SARB policy rate is equal to r. Which one of the following statements is correct about the top figure in the diagram? The relationship between the interest rate and the level of output is negative. 1. The relationship between the interest rate and the level of output is positive. 2. The is no relationship between the interest rate and the level of output at point a. 3. 4. There is an uncertain relationship between the interest rate and the level of output. 30. Refer to the bottom figure in the diagram; At point a output level Y is higher than Yn. Identify the INCORRECT options about the short-run equilibrium position. a. The change in inflation is equal to (T- TT-1). b. The change in inflation is less than (Tm- TT-1). C. The inflation rate is on the rise. d. There is no pressure on inflation. The economy is overheating. e. Only a and b Only b and d Only b, e and c Only c, d and e Only d and e 12345 Change in infation rate

dagram below and answer questions 29 and 30. IS LM (mp 29. Suppose that the SARB policy rate is equal to r. Which one of the following statements is correct about the top figure in the diagram? The relationship between the interest rate and the level of output is negative. 1. The relationship between the interest rate and the level of output is positive. 2. The is no relationship between the interest rate and the level of output at point a. 3. 4. There is an uncertain relationship between the interest rate and the level of output. 30. Refer to the bottom figure in the diagram; At point a output level Y is higher than Yn. Identify the INCORRECT options about the short-run equilibrium position. a. The change in inflation is equal to (T- TT-1). b. The change in inflation is less than (Tm- TT-1). C. The inflation rate is on the rise. d. There is no pressure on inflation. The economy is overheating. e. Only a and b Only b and d Only b, e and c Only c, d and e Only d and e 12345 Change in infation rate

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter34: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 11PA

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