If Most Shocks to the Economy Are ________ Shocks,then ________

question 23

Multiple Choice

If most shocks to the economy are ________ shocks,then ________.

• A)aggregate demand;there is a tradeoff between the dual objectives in the short-run
• B)temporary aggregate supply;inflation stabilization policy will not stabilize activity in the short-run
• C)temporary aggregate supply;output stabilization policy is consistent with no change in inflation in the long-run
• D)all of the above
• E)none of the above

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Definitions:

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it is determined by the chosen significance level.

Commuted

The act of reducing a legal penalty or sentence, often referring to changing a prison sentence to one that is less severe.

Hypothesis

An initial theory put forward with partial evidence to guide subsequent research.

Employees

Individuals who are hired by a business or organization to perform tasks and services in exchange for compensation.