There Is a Temporary Adverse Supply Shock

question 37

Multiple Choice

There is a temporary adverse supply shock.Given the effects of this shock,if the central bank chooses to return unemployment closer to its previous rate it would

• A)raise the rate at which it increases the money supply.In the long run this will shift the short-run Phillips curve right.
• B)raise the rate at which it increases the money supply.In the long run this will shift the short-run Phillips curve left.
• C)reduce the rate at which it increases the money supply.In the long run this will shift the short-run Phillips curve right.
• D)reduce the rate at which it increases the money supply.In the long run this will shift the short-run Phillips curve left.

---

Definitions:

Profound Effects

Deep or significant impacts that alter the state or course of something.

Transformational Leaders

Leaders who inspire and motivate their followers to exceed their own self-interests for the good of the organization and to achieve extraordinary outcomes.

Excite Followers

The ability of a leader to inspire and motivate followers towards achieving a common goal.

High Levels

Typically refers to a significant or above-average measure of a certain quality or quantity, such as productivity or achievement in a given context.