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:

Hearing Voices

An experience where an individual hears voices when no external sound is present, often associated with conditions like schizophrenia or bipolar disorder.

Hallucinations

Perceptions that occur without an external stimulus but appear real, involving seeing, hearing, feeling, tasting, or smelling things that aren't there.

Disordered Thinking

A disruption in the ability to organize thoughts coherently, often seen in conditions like schizophrenia, resulting in impaired communication and understanding.

Bizarre Behavior

Actions that are very strange or unusual, often indicating an underlying mental health issue.