When a Negative Shock to Aggregate Demand Occurs,the Inflation Rate

question 176

Multiple Choice

When a negative shock to aggregate demand occurs,the inflation rate will:

• A) increase.
• B) remain the same.
• C) decrease.
• D) be automatically adjusted by the Fed.

---

Definitions:

Hostile Humor

A type of humor characterized by sarcasm, ridicule, or mockery, which may convey aggression or disdain towards others.

Freud's Theory

A psychological theory developed by Sigmund Freud that emphasizes unconscious processes, including the structure of personality into id, ego, and superego, and the importance of childhood experiences.

Catharsis

The process of expressing and thus easing intense or withheld emotions, facilitating emotional comfort.

Homophobia

Prejudice, fear, or discrimination against homosexuals or homosexuality, often manifesting in social exclusion, violence, or hate speech.