Long-Run Aggregate Supply Shocks Are Not a Source of Business

question 46

Multiple Choice

Long-run aggregate supply shocks are not a source of business cycle fluctuations in the ________,because ________.

• A)traditional Keynesian model;long-run supply shocks are incompatible with adaptive expectations
• B)traditional Keynesian model;demand fluctuations are considered of dominant importance
• C)real business cycle model;shocks cannot persist in the long run,when prices and wages are flexible
• D)new Keynesian model;such shocks are anticipated by forward-looking consumers and firms

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Definitions:

First-line Supervisor

A managerial position responsible for directly overseeing and managing the work of entry-level or frontline employees.

Self-managing Responsibilities

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Productivity Improvements

Involves strategies and actions taken to increase the efficiency and effectiveness of processes, leading to higher outputs with the same or reduced input levels.

Technological Change

The process by which new technologies and innovations are developed, leading to changes in productivity, efficiency, and societal norms.