An Inflation That Begins as a Result of Any Demand

question 117

Multiple Choice

An inflation that begins as a result of any demand or supply shock will eventually come to a halt

• A)if there is no monetary validation.
• B)in the long run.
• C)in the short run.
• D)independent of the economy's adjustment process.
• E)if expected inflation is positive but constant.

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Definitions:

Groupthink Theory

A mental occurrence within a group where the pursuit of agreement or uniformity leads to illogical or ineffective choices.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, either more conservative or riskier.

Risky Shift

The phenomenon where groups make riskier decisions than individuals would.

Group Norms

Unwritten rules or expectations within a group that dictate the behaviors, values, and attitudes of its members.