If Prices Are Sticky and There Are No Aggregate Demand

question 118

Multiple Choice

If prices are sticky and there are no aggregate demand shocks, and if the Fed raises the interest rate, ________ and ________.

• A) unemployment falls; potential output falls
• B) the real interest rate falls; short-run output falls
• C) the unemployment rate rises; short-run output rises
• D) the real interest rate rises; short-run output falls
• E) the real interest rate falls; current output falls

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Definitions:

Sexual Coercion

Engaging in sexual activities with an individual by exerting force, using substances like alcohol or drugs, or applying pressure without their consent.

Secure Sense

A feeling of confidence and trust in one's capacity to explore the environment, feel safe, and be protected.

Power-related Words

Language or terminology that evokes, addresses, or relates to the dynamics of control, authority, influence, or force.

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions.