If the Fed Increases Demand in Response to an Adverse

question 65

Multiple Choice

If the Fed increases demand in response to an adverse supply shock, then

• A)the unemployment will get worse but the inflation better.
• B)the unemployment and inflation rates will both fall.
• C)the unemployment rate will go down but the inflation rate will go up.
• D)nothing will happen because an adverse shock shifts the supply curve.

---

Definitions:

Dorsiflexion

Pointing the toes upward.

Horticultural Therapy

The practice of using gardening and plant-based activities to improve physical and mental health.

Muscle Strength Testing

An evaluation technique that measures the strength of various muscle groups based on their ability to contract.

Lateral Flexion

The movement of bending sideways at the waist or neck, a movement often assessed in physical examinations or in fitness.