If a New Government Adopted Some Ill-Advised Regulations Causing the Economy

question 37

Multiple Choice

If a new government adopted some ill-advised regulations causing the economy to be less efficient ________.

• A)the ensuing negative supply shock would lead to an immediate rise in inflation
• B)in the short-run this would create a negative output gap but eventually the previous general equilibrium would be restored by subsequent rightward shifts of the AS curve
• C)there would be no permanent changes in output and inflation
• D)all of the above
• E)none of the above

---

Definitions:

Major Job Functions

The primary duties and responsibilities that define a specific job or position within an organization.

Criterion-Related

A term related to validation methods that assess the effectiveness of a tool or process by comparing it with a predefined criterion or standard.

Selection Test Validity

The extent to which a test accurately measures what it is intended to measure in the context of selecting candidates for a job.

Empirical Data

Information obtained through observation, experimentation, or experience, rather than through theory or pure logic.