Answer choices to question are provided in the second photo the AS curve is vertical atfull-employment outputthe AS curve slopesupward in the short runthe AD curve is vertical inthe long runthe AD curve slopesdownward (no matter thetime frame)=rE We said in class that when prices rise (asin inflation), nominal interest rates tend toTheserisehigher rates make it more expensive toborrow, so this explains in part why[ Select]

At the marketplace, any change in inflation will lead to change the nominal interest rate as there…

Answered: We said in class that when prices rise…

We said in class that when prices rise (as in inflation), nominal interest rates tend to These rise ㅁ higher rates make it more expensive to borrow, so this explains in part why [ Select ] ㅁ

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 6PA

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Question

Answer choices to question are provided in the second photo

the AS curve is vertical at
full-employment output
the AS curve slopes
upward in the short run
the AD curve is vertical in
the long run
the AD curve slopes
downward (no matter the
time frame)
=
r
E

We said in class that when prices rise (as
in inflation), nominal interest rates tend to
These
rise
higher rates make it more expensive to
borrow, so this explains in part why
[ Select]

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