Supply Shocks After 1985

question 28

Multiple Choice

Supply shocks after 1985

• A)forced the Fed to follow restrictive monetary policy and caused a negative output ratio.
• B)forced the Fed to follow restrictive monetary policy and caused a positive output ratio.
• C)allowed the Fed to follow accommodative monetary policy and caused a negative output ratio.
• D)allowed the Fed to follow accommodative monetary policy and push the output ratio toward zero.

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Definitions:

Flynn Effect

The observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in various parts of the world over the 20th century.

Standards of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a certain geographic area.

IQ Scores

Quantitative measurements used to assess human intelligence, derived from standardized tests.

Interracial

Pertaining to relationships, unions, or interactions between people of different racial backgrounds.