Question: Consider a standard AD-AS model. If the SRAS curve is steep, a permanent increase in investment that increases potential output leads to a relatively large

Consider a standard AD-AS model.

If the SRAS curve is steep, a permanent increase in investment that increases potential output leads to a relatively large short-run increase in inflation but no long-run increase in inflation. True or false with brief explationation

Consider a country that chooses to ban capital inflows and outflows in order to maintain the fixed exchange rate. The country can use monetary policy to stabilise its own economy. true or false

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