(Figure: Real Output Shock) This Figure Shows How Real

question 142

Multiple Choice

(Figure: Real Output Shock) This figure shows how real output growth reacts to a shock of a 10 percent increase in the price of new oil. How long does it take for the economy to return to normal?

• A) five quarters
• B) five years
• C) ten years
• D) two and a half years

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Definitions:

Cardiac Muscle

Specialized, striated muscle tissue found only in the heart, responsible for contracting and pumping blood throughout the body.

Peristalsis

A sequence of ripple-like muscular contractions that propel food along the digestive system.

Aerobic Respiration

A process that requires large amounts of oxygen and uses glucose to make ATP.

Glucose

A simple sugar that is an important energy source for cells and the main sugar found in the blood, used by the body for energy and metabolic processes.