A Shock Increases the Costs of Production

question 13

Multiple Choice

A shock increases the costs of production.Given the effects of this shock,if the central bank wants to return the unemployment rate towards its previous level it would

• A)increase the rate at which the money supply increases.This will also move inflation closer to its previous rate..
• B)increase the rate at which the money supply increases.However,this will make inflation higher than its previous rate
• C)decrease the rate at which the money supply increases.This will also move inflation closer to its original rate
• D)decrease the rate at which the money supply increases.However,this will make higher than its previous rate.

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Definitions:

Delta

A method of electrical connection in which each side of a load is connected to a vertex of a triangle-like configuration, with power supplied at each vertex.

Wye

An electrical configuration where three components are connected at a single common point, forming a Y shape.

True Power

The actual power consumed by a device in an electrical circuit, measured in watts (W), and calculated as the product of voltage, current, and the cosine of the phase angle between them.

Three-Phase Circuit

An electrical distribution system consisting of three alternating currents of the same frequency, which reach their peak values at different times.