In the short-run model, the steady state is characterized by $\pi _ { t } = \pi _ { t - 1 } = \bar { \pi }$
and $\bar { a } = \bar { a } = 0$
.

Name: In the short-run model, the steady state is characterized by $\pi _ { t } = \pi _ { t - 1 } = \bar { \pi }$ and $\bar { a } = \bar { a } = 0$ .
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Question

In the short-run model, the steady state is characterized by $\pi _ { t } = \pi _ { t - 1 } = \bar { \pi }$ 
and $\bar { a } = \bar { a } = 0$ 
.

Quizplus · Accepted Answer

In the short-run model, the steady state is where inflation $\pi$ is constant over time, and output gap $a$ is zero, indicating no deviation from potential output.

In the Short-Run Model, the Steady State Is Characterized By \pi