What Is the Main Difference Between a Temporary and Permanently

question 6

Multiple Choice

What is the main difference between a temporary and permanently negative supply shock?

• A)The real interest rate immediately decreases after a temporary shock while it eventually increases after a permanent shock.
• B)Output increases right away after a temporary shock but the impact does not last whereas for a permanent shock output permanently decreases.
• C)A temporary shock will see a permanent increase in inflation while inflation will only rise temporarily after a permanent shock.
• D)all of the above
• E)none of the above

---

Definitions:

Metabolic Rate

The speed at which the body consumes energy to maintain basic life functions, such as breathing and circulation.

Dietary Restriction

Limitations on the amount and type of food ingested for reasons such as health, religious beliefs, or ethical choices.

Ghrelin

A hormone produced mainly by the stomach that stimulates appetite and promotes fat storage.

Anorexia Nervosa

An eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to restricted eating and severe weight loss.