Which of the Following Statements Is Correct

question 25

Multiple Choice

Which of the following statements is correct?

• A) If most shocks to the economy are aggregate demand shocks or permanent aggregate supply shocks, then policy that stabilizes inflation will also stabilize economic activity, even in the short run.
• B) If temporary supply shocks are more common, then a central bank must choose between stabilizing inflation and stabilizing output in the short run.
• C) In the long run, there is no conflict between stabilizing inflation and economic activity in response to shocks.
• D) all of the above.

---

Definitions:

Elimination

To remove, get rid of, exclude; also to pass urine from the bladder or stool from the bowel.

Invasive Procedure

A medical technique that involves entering the body through a cut or puncture to repair or diagnose an issue.

Catheterization

A medical procedure that involves inserting a thin, flexible tube called a catheter into the body, typically to remove fluids or to deliver medication.

Urinalysis

A test of urine to detect and manage a wide range of disorders, such as urinary tract infections, kidney disease, and diabetes.