Which of the Following Would Be Represented by a Positive

question 43

Multiple Choice

Which of the following would be represented by a positive value of the demand shock, ε_t?

• A)an irrational wave of optimism among investors
• B)a decrease in government spending
• C)an aggressive increase in oil prices by a cartel
• D)an increase in the central bank's inflation target

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Definitions:

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Glands

Organs in the body that secrete hormones or other substances directly into the blood or onto a body surface.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, transmitting neural signals between the brain and the rest of the body.

Reflexes

Automatic, involuntary responses to specific stimuli, such as the knee-jerk reaction, that are mediated by the nervous system.