Adverse Aggregate Supply Shocks Would Result in

question 162

Multiple Choice

Adverse aggregate supply shocks would result in

• A) a lower rate of inflation and a higher rate of unemployment.
• B) a higher rate of inflation and a lower rate of unemployment.
• C) a lower rate of inflation and a lower rate of unemployment.
• D) a higher rate of inflation and a higher rate of unemployment.

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Definitions:

Hormone

A chemical messenger produced by glands in the body, which regulates various bodily functions and processes.

Closeness

The quality of feeling familiar, intimate, or emotionally connected with someone or something.

Defensive Pessimism

Thinking negative thoughts to prepare for negative outcomes.

Pessimistic Explanatory Style

Seeing bad events as all-encompassing.