What Is the Main Difference Between a Temporary and Permanently

question 6

Multiple Choice

What is the main difference between a temporary and permanently negative supply shock?

• A)The real interest rate immediately decreases after a temporary shock while it eventually increases after a permanent shock.
• B)Output increases right away after a temporary shock but the impact does not last whereas for a permanent shock output permanently decreases.
• C)A temporary shock will see a permanent increase in inflation while inflation will only rise temporarily after a permanent shock.
• D)all of the above
• E)none of the above

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Definitions:

Flexible

Capable of adapting to changes and new conditions in a thoughtful and efficient manner.

Span of Control

The number of individuals that a manager or supervisor is directly responsible for overseeing in an organizational structure.

Supervisory Direction

Guidance and oversight provided by supervisors to ensure tasks and activities are completed according to organizational standards.

Assembly Plant

A manufacturing facility where various components of a product are put together to form a final product.