In Which Case,if Any,will Inflation Remain Higher After a Temporary

question 50

Multiple Choice

In which case,if any,will inflation remain higher after a temporary adverse supply shock?

• A)both when the central bank maintains a higher money supply growth rate and when the central bank does nothing
• B)only if the central bank does nothing
• C)only if the central bank maintains a higher money supply growth rate
• D)None of the above is correct.Whether the central bank maintains a higher money supply growth rate or not,the inflation rate will return to its original level.

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Definitions:

Martin Seligman

A psychologist known for his work in positive psychology and studies on happiness and well-being.

Positive Psychology

A branch of psychology that focuses on the study of positive human functioning and what makes life most worth living.

Subjective Well-being

Subjective well-being refers to how individuals experience and evaluate their own lives in terms of happiness and contentment.

Feel-good, Do-good Phenomenon

The tendency for people to be more willing to help others when they are in a good mood themselves.