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:

RNA

Ribonucleic acid, a molecule essential in various biological roles in coding, decoding, regulation, and expression of genes.

Calcium

A chemical element essential for living organisms, primarily in bone formation and metabolic functions.

Frontal Lobes

The part of the brain located behind the forehead, critical for executive functions such as decision-making, problem-solving, and controlling behavior.

Temporal Lobes

Brain regions located on both sides of the brain responsible for processing auditory information and are associated with memory and emotion.