Isolated Negative Aggregate Supply Shocks,in the Absence of Monetary Validation,will

question 86

Multiple Choice

Isolated negative aggregate supply shocks,in the absence of monetary validation,will

• A)eventually be self-correcting as wages slowly fall.
• B)never be self-correcting without government policy to expand the money supply.
• C)be self-correcting only if the aggregate demand curve shifts.
• D)result in a permanent output gap.
• E)have no short-run or long-run effects.

---

Definitions:

Common Stock Subscribed

An agreement by investors to purchase common stock from a company, indicating the investors' commitment to buy shares at a future date.

Subscriptions Receivable

Amounts owed by customers for subscription services that have been billed but not yet paid.

Stock Warrants

Certificates granting the holder the right to purchase shares of stock at a specified price before a set expiration date.

Option Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.