Starting from Long-Run Equilibrium,without Policy Intervention,the Long-Run Impact of an Adverse

question 90

Multiple Choice

Starting from long-run equilibrium,without policy intervention,the long-run impact of an adverse supply shock is that prices will:

• A) be permanently higher and output will be restored to the natural level.
• B) return to the old level and output will be restored to the natural level.
• C) be permanently higher and output will be permanently lower.
• D) return to the old level,but output will be permanently lower.

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Definitions:

Categorical Syllogism

A form of logical argument that applies deductive reasoning to come to a conclusion based on two premises that are asserted or assumed to be true.

Goodness Of Fit

Appropriateness of environmental demands and constraints to a child’s temperament.

Temperament

The enduring aspect of an individual's personality that influences how they interact with the world.

Environment Demands

The requirements or pressures put forth by one's surroundings, necessitating adaptation or response.