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:

Umami

Umami is one of the five basic tastes, alongside sweet, sour, bitter, and salty, and is characterized by a savory flavor found in foods like tomatoes, cheese, and soy sauce.

Olfactory Receptor

A sensory receptor specialized for detecting odors, located in the mucous membrane of the nose.

Cilia

Microscopic, hair-like structures on the surface of cells that move in a wave-like fashion to transport particles or fluids.

Perceptual Constancy

The brain's ability to recognize objects as unchanged despite changes in sensory input, such as changes in lighting, angle, or distance.