Supply Shocks After 1985

question 28

Multiple Choice

Supply shocks after 1985

• A)forced the Fed to follow restrictive monetary policy and caused a negative output ratio.
• B)forced the Fed to follow restrictive monetary policy and caused a positive output ratio.
• C)allowed the Fed to follow accommodative monetary policy and caused a negative output ratio.
• D)allowed the Fed to follow accommodative monetary policy and push the output ratio toward zero.

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Definitions:

Anticipated Threat

An expected or forecasted danger or problem that prompts preparation or preventive measures.

Preoccupation

The state of being absorbed or engrossed in thoughts or concerns about a particular issue or topic.

Anxiety

A sense of anxiety, apprehension, or discomfort due to an unpredictable result.

Interpersonal Effectiveness

The ability to interact with others in a way that is both assertive and respectful, achieving personal goals while maintaining positive relationships.