A Favorable Supply Shock Causes Output to

question 32

Multiple Choice

A favorable supply shock causes output to

• A)rise.To counter this a central bank would increase the money supply.
• B)rise.To counter this a central bank would decrease the money supply.
• C)fall.To counter this a central bank would increase the money supply.
• D)fall.To counter this a central bank would decrease the money supply.

---

Definitions:

µ = 109

Represents the mean (µ) of a dataset or distribution, here specifically stated as 109.

Z-statistic

A specific kind of norm score that shows the number of standard deviations by which an individual item deviates from the distribution's average.

Critical Value

The threshold in a statistical test that defines the boundary for rejecting the null hypothesis.

Calculated Value

A numerical value derived from a mathematical computation or formula.