Given an Adverse Supply Shock,an "Extinguishing Policy Response" Will

question 43

Multiple Choice

Given an adverse supply shock,an "extinguishing policy response" will

• A)maintain the inflation rate and the output ratio.
• B)lower the inflation rate and the output ratio.
• C)raise the inflation rate and the output ratio.
• D)maintain the inflation rate but lower the output ratio.

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Definitions:

Endocrine System

A network of glands throughout the body that produces hormones regulating important body functions.

Somatic Nervous System

A part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles.

Autonomic

Pertaining to the part of the nervous system that controls involuntary actions of the muscles and glands.

Somatic

Pertaining to the body, especially as distinct from the mind or spirit, often in context with sensory experiences or the voluntary nervous system.