A Supply Shock That Is Not Responded to with an Expansionary

question 77

Multiple Choice

A supply shock that is not responded to with an expansionary policy will result in

• A)a one-time increase in the price level, but not inflation.
• B)neither a one-time increase in the price level nor inflation.
• C)both a one-time increase in the price level and inflation.
• D)inflation, but not a one-time increase in the price level.

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Definitions:

Business Segment

A division within a company that generates its own revenue and expenses, often focusing on a specific product or market.

Repairing

The process of restoring equipment, machinery, or property to a state where it can function effectively again.

Comparable Used Van

A used van that is similar in age, condition, mileage, and features to another van, typically used for benchmarking purposes.

Financially Better

A general term referring to an improved financial condition or status of an individual, company, or economy.