If There Is a Temporary Adverse Supply Shock,then the Short-Run

question 57

Multiple Choice

If there is a temporary adverse supply shock,then the short-run Phillips curve shifts to the

• A)right.It remains to the right regardless of monetary policy.
• B)right.It remains to the right if the central bank pursues expansionary monetary policy.
• C)left.It remains to the left regardless of monetary policy.
• D)left.It remains to the left if the central bank pursues expansionary monetary policy.

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Definitions:

High Risk

Referring to investments or activities with a greater than usual potential for loss or that may involve significant uncertainty.

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but not full control.

Investment Account

A financial account that holds securities, cash, and other investments for investors, typically managed by a financial institution or investment firm.

Dividend Income

Income received from owning shares in a company, typically paid out from the company's earnings to its shareholders at set intervals.