By Itself, a Supply Shock Such as a Hike in the Price

question 392

Multiple Choice

By itself, a supply shock such as a hike in the price of oil, can

• A) cause real GDP to permanently decrease year after year.
• B) not cause inflation.
• C) be inflationary as long as there is no policy response.
• D) cause a wage-price spiral.

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Definitions:

Syntax

The set of rules, principles, and processes that govern the structure of sentences in any given language, including the order of words.

Babbling

Early stage of language development in infants, characterized by repetitive sounds and syllables.

Speech Development

The process by which children learn to communicate through spoken language, from babbling as infants to forming complete sentences.

Telegraphic Speech

describes the early stage of child language development, characterized by simple two-word sentences that communicate a clear message with minimal words.