By Itself, a Supply Shock Such as a Hike in the Price

question 392

Multiple Choice

By itself, a supply shock such as a hike in the price of oil, can

• A) cause real GDP to permanently decrease year after year.
• B) not cause inflation.
• C) be inflationary as long as there is no policy response.
• D) cause a wage-price spiral.

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Definitions:

Deep Vein Thromboses (DVTs)

The formation of blood clots within a deep vein, typically in the legs, which can lead to serious complications if dislodged.

Immobile

Unable to move or be moved, often used to describe patients who are bedridden or have severe movement restrictions.

Elastic Stockings

Specialized hosiery designed to improve blood circulation, often used in medical therapy to prevent venous disorders like thrombosis.

Sequential Compression Stockings

Medical devices designed to improve blood flow and prevent blood clots in the legs through alternating pressure.