By Itself,a Supply Shock,such as a Hike in the Price

question 157

Multiple Choice

By itself,a supply shock,such as a hike in the price of oil,can

• A)cause real GDP to permanently decrease year after year.
• B)not result in persisting inflation.
• C)be inflationary as long as there is no policy response.
• D)result in persisting inflation if aggregate supply persistently increases.
• E)result in a persisting wage-price spiral.

---

Definitions:

Twenty-Fifth Amendment

An amendment to the United States Constitution that provides procedures for replacing the president or vice president in the event of death, removal, resignation, or incapacitation.

Policies

Guidelines or principles that direct decision-making and behavior in organizations or government.

Oversight

The process of monitoring and evaluating the operations and activities of a government or organization to ensure they are compliant with laws, regulations, and standards.

Congress

The national legislative body of the United States, consisting of the House of Representatives and the Senate, responsible for making federal laws.