The Long Run Result of the Government Responding to a Negative

question 108

Multiple Choice

The long run result of the government responding to a negative supply side shock with increased spending will be a:

• A) faster recovery, but it will cause even greater inflation.
• B) slower recovery, if they misjudge their own spending.
• C) faster recovery at a lower price level than allowing short-run aggregate supply to adjust on its own.
• D) slower recovery, but it will cause inflation to be lower than if they did nothing.

---

Definitions:

Culture

The sum of attitudes, customs, and beliefs that distinguishes one group of people from another, transmitted from generation to generation through language, material objects, ritual, institutions, and art.

Ukuthwasa

A traditional healing and initiation process among certain South African cultures, leading to becoming a Sangoma (traditional healer).

Culture-Bound Syndrome

Psychological disorders that are limited to specific cultural or social groups and often involve unique symptoms not recognized in other cultural contexts.

Pathology

The study of diseases and the changes that they cause in the structure and function of body organs and tissues.