In the ADAS model, starting from longrun equilibrium, and assuming the central bank takes no deliberate policy actions; the long-run impact of a onetime large ination shock is: Select one: C) a. Higher ination and lower output [relative to the initial equilibrium). 0 b. Both ination and output are unchanged (relative to the initial equilibrium). O c. Higher ination and higher output (relative to the initial equilibrium). 0 d. Lower ination and lower output (relative to the initial equilibrium). D e. Lower inflation (relative to the initial equilibrium). Which of the following statements best describes the menu costs of inflation? Select one: C) a. Ination will cause distortions in a non-indexed tax system 0 b. Ination will cause a waste of real resources as people economize on cash holdings. O c. Ination will require real resources to be used in changing prices. 0 d. Ination will increase the cost of raw food inputs used by restaurants. 0 e. Ination will cause unexpected reidistributions of wealth. Which of the following statements about GDP is true? Select one: C) a. The value of real Australian GDP is a volume measure and is not measured in dollars. 0 b. Only goods and services with observed market prices are measured in GDP. 0 c. All of the options. 0 d. The rental value of ownereoccupied housing is measured in GDP. D e. Real GDP = Nominal GDP x GDP Price Index