What Is the Short-Run Effect of a Temporary Supply Shock

question 100

Multiple Choice

What is the short-run effect of a temporary supply shock?

• A) The level of in?ation will be lower while output increases.
• B) The level of output and in?ation both increase.
• C) The level of in?ation will be higher but output remains the same.
• D) The level of in?ation will be higher while output declines.

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Definitions:

Cross-sectional

A study method that observes and analyzes data from either an entire population or a selected representative segment at a particular moment.

Longitudinal

Relating to research or study that involves repeated observations of the same subjects over a period, often years or decades.

Time-lagged

Referring to studies or analyses that consider the delay between the occurrence of one event and the observation of its effects.

Cross-sectional

In research, it describes a study that observes a diverse population at a single point in time to identify potential correlations or trends.