In an Open Economy, in the Long Run, Permanent Shocks

question 101

Multiple Choice

In an open economy, in the long run, permanent shocks to GDP:

• A) are always contentious during an election year.
• B) are rare, but cannot be ignored.
• C) must be dealt with by permanent changes in consumption.
• D) indicate that taxes need to be raised.

---

Definitions:

Latent Function

Latent functions are consequences that contribute to adjustment but were not intended. For example, a latent function of attending a funeral is that it becomes a family reunion. Latent functions are the sociological explanations of a given action.

Structural-Functional Explanation

A theoretical perspective in sociology and anthropology that sees society as a complex system whose parts work together to promote solidarity and stability.

Cremains

That which is left after cremation.

Cryonics

The practice of freezing individuals who have died, with the hope that future technology may revive and cure them.