Which of the Following Is the Most Likely Medium-Run Outcome

question 36

Multiple Choice

Which of the following is the most likely medium-run outcome of an adverse supply shock?

• A)an increase in consumer prices and a higher level of real GDP
• B)a decrease in real GDP
• C)an increase in real wage rates
• D)an increase in frictional unemployment
• E)an increase in nominal GDP with real GDP remaining the same

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Definitions:

Rapid Cycling

A pattern in bipolar disorder characterized by four or more episodes of mania or depression within a year.

Introjection

A psychological process by which an individual unconsciously adopts the ideas, attitudes, or behaviors of others.

Automatic Thoughts

These are involuntary, spontaneous thoughts that can influence emotions and behavior, often occurring without conscious awareness.

Relationships

Connections, associations, or involvement between individuals or entities.