Which of the Following Statements Is Correct

question 25

Multiple Choice

Which of the following statements is correct?

• A) If most shocks to the economy are aggregate demand shocks or permanent aggregate supply shocks, then policy that stabilizes inflation will also stabilize economic activity, even in the short run.
• B) If temporary supply shocks are more common, then a central bank must choose between stabilizing inflation and stabilizing output in the short run.
• C) In the long run, there is no conflict between stabilizing inflation and economic activity in response to shocks.
• D) all of the above.

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Definitions:

Psychosocial Factors

Elements of an individual's social and psychological environment that can impact their mental health and behavior.

Validity

The degree to which a tool, test, or study accurately measures or reflects what it is intended to.

Field Trials

Field Trials are experiments conducted in real-world settings outside of the laboratory to test the effectiveness and feasibility of interventions, technologies, or treatments in natural environments.

Evidence-Based Treatment

Therapeutic approaches and practices that are backed by scientific evidence, showing effectiveness for treating specific disorders.