As a Result of a Positive Shock To $\vec { C }$

question 288

Multiple Choice

As a result of a positive shock to $\vec { C }$ :

• A) inflation and output growth increase in the short run, but in the long run they return to the rates before the shock.
• B) inflation and output growth decrease in the short run, but in the long run they return to the rates before the shock.
• C) inflation increases and output growth decreases in the short run, but in the long run they return to the rates before the shock.
• D) inflation and output growth increase in both the short run and the long run.

Evaluate the effects of the New Deal programs on the recovery process.

Identify the factors contributing to the severity and duration of the Great Depression.

Assess the role of monetary contraction and expansion in economic stability and growth.

Understand the implications of tax policies on economic behavior and recovery during recessions.

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Definitions:

Poor Judgment

The tendency to make decisions or take actions that are not well considered or wise, often leading to unfavorable outcomes.

Wishful Thinking

The formation of beliefs based on what is desired to be true rather than on evidence, reality, or rationality.

Mood Swings

Rapid and often extreme fluctuations in emotional state, ranging from euphoria to despair.

Psychotic Disorder

A mental health condition characterized by disconnection from reality, which can include delusions and hallucinations.