When a Price Shock Has Occurred,inflation Returns to Its Pre-Shock

question 59

Multiple Choice

When a price shock has occurred,inflation returns to its pre-shock rate ________.

• A)in the period following the price shock
• B)in the period when output has returned to its pre-shock rate
• C)once the output gap has returned to zero
• D)only in the long run
• E)none of the above

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Definitions:

Generalized Feelings

Broad or widespread emotional responses that are not specific to one particular cause or object.

Less Intense

Refers to a situation, condition, or feeling that is not as strong or extreme as it could be.

Mood

A temporary state of mind or feeling that can affect an individual's perception and behavior but is less specific than emotions.

Specific Object

A clearly defined item or entity that can be identified or distinguished from others.