In the Event of a Supply Shock, a Central Bank

question 72

Multiple Choice

In the event of a supply shock, a central bank that prioritizes stable inflation over GDP, will:

• A) try to boost aggregate demand.
• B) increase interest rates.
• C) not take any action because the supply shock is temporary.
• D) increase money supply.

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Definitions:

Categories of Adopters

Groups into which consumers can be segmented based on their readiness and speed to adopt a new product or innovation.

Product Life Cycle

The course of a product's sales and profits over its lifetime, typically divided into introduction, growth, maturity, and decline phases.

Diffusion of Innovation

The process by which a new idea, product, or technology spreads through a culture or market over time.

Strategy Seminar

A workshop or meeting focused on planning and decision-making processes to outline and implement business strategies.