Which-Short Run Economic Shock Would Be the MOST Difficult to Address

question 127

Multiple Choice

Which-short run economic shock would be the MOST difficult to address through monetary policy?

• A) increase in short-run aggregate supply
• B) increase in aggregate demand
• C) decrease in short-run aggregate supply
• D) decrease in aggregate demand

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Definitions:

Welfare Payments

Government-provided financial assistance to individuals or families in need to support basic living expenses.

Homeless Persons

Individuals who do not have an adequate or permanent place to live, often lacking regular access to safe shelter.

Privatized

The transfer of ownership or control of a business or industry from the government to private individuals or organizations.

Fallacy of Composition

The erroneous belief that what applies to individual members of a group necessarily applies to the group as a whole or vice versa.