Starting from a long-run equilibrium,immediate or eventual decreases in the rate of inflation may be the result of any of the following EXCEPT
A) a downward inflation shock.
B) a monetary "easing."
C) a decrease in government purchases.
D) a monetary "tightening."
E) a tax increasE.

Question

Quizplus · Accepted Answer

A monetary "easing" typically involves lowering interest rates or increasing the money supply, which can lead to higher inflation, not a decrease.

Starting from a Long-Run Equilibrium,immediate or Eventual Decreases in the Rate