AD - AS Shocks

question 72

Multiple Choice

AD - AS Shocks
-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:

Gig Economy

A labor market characterized by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs.

Lifetime Employees

A concept where employees stay with a single employer for the entirety of their career, often seen as offering stability and loyalty.

Working Individuals

Refers to people who are engaged in employment or activities that contribute to the production of goods and services.

Polysome

A complex formed by multiple ribosomes simultaneously translating a single mRNA strand during protein synthesis.