The Distinction Between Real and Nominal Shocks Is That

question 52

Multiple Choice

The distinction between real and nominal shocks is that

• A)real shocks directly affect only the IS curve, but not the FE line or LM curve.
• B)real shocks directly affect only the FE line, but not the LM curve.
• C)real shocks directly affect only the IS curve or the FE line, but not the LM curve.
• D)real shocks have a large direct effect on the IS curve and the FE line, but only a small direct effect on the LM curve.

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Definitions:

Boundary-spanning Network

A social network that extends beyond the internal boundaries of an organization to include external contacts and resources.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony and conformity results in irrational or dysfunctional decision-making outcomes.

Relationship Strength

The degree of closeness, connectedness, and positive regard within a relationship.

Reciprocity

The exchange of resources, services, or obligations between individuals or groups, often with the expectation of mutual benefit.