In the Long Run,following a Combination of a Negative Demand

question 26

Multiple Choice

In the long run,following a combination of a negative demand shock and a temporary negative supply shock,

• A)both inflation and output return to the original long-run equilibrium values.
• B)inflation is permanently increased,while output returns to potential output.
• C)output returns to potential output,while inflation may be higher or lower than its initial value.
• D)inflation is permanently reduced,while output returns to potential output.
• E)None of the above.

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Definitions:

Mexican Nationals

Citizens of Mexico, a country in southern North America, with a rich cultural heritage and diverse landscapes.

Race-specific Policies

Strategies and laws designed to address issues uniquely affecting individuals of certain racial groups.

Affirmative Action

Policies or measures aimed at increasing the representation of women and minorities in areas of employment, education, and business from which they have been historically excluded.

William Julius Wilson

An influential American sociologist known for his research and theories on race, class, and inequality in the United States.