By Itself, a Supply Shock Such as an Increase in the Price

question 182

Multiple Choice

By itself, a supply shock such as an increase in the price of oil, will

• A) cause real GDP to permanently decrease year after year.
• B) not cause inflation if there is no policy response.
• C) be inflationary as long as there is no policy response.
• D) cause a wage-price spiral.

---

Definitions:

Union Members

Individuals who belong to a labor union, an organization that represents the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.

Chief-Of-Staff

A senior executive who oversees the operational activities of other staff members and advises the leader of an organization or governmental entity.

Mental Health Services

A range of services designed to provide support, diagnosis, treatment, and maintenance of individuals' mental health and well-being.

Minority Community

A group of people who are smaller in number compared to the larger population, often defined by racial, ethnic, cultural, or religious differences.