An Inflation Shock Is

question 143

Multiple Choice

An inflation shock is:

• A)the level of inflation consistent with output in a recessionary gap.
• B)the level of inflation consistent with output in an expansionary gap.
• C)a sudden change in the normal behavior of inflation, unrelated to the nation's output gap.
• D)a change in the inflation rate generated by excessive aggregate spending.

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Definitions:

Military Service

Employment in the armed forces of a country, including duties in defense, operations, and possibly combat, either as a voluntary career or through conscription.

Border States

Refers to the slave states that did not secede from the Union during the American Civil War, namely Delaware, Maryland, Kentucky, and Missouri.

Emancipation Proclamation

A historic executive order issued by President Abraham Lincoln in 1863 that declared the freedom of all enslaved people in Confederate states.

Officially Take Effect

When something is said to officially take effect, it means it begins to legally or formally be applied or enforced from a specified moment.