AD - AS Shocks

question 72

Multiple Choice

AD - AS Shocks
-In the long run,following a combination of a negative demand shock and a temporary negative supply shock,________.

• A)both inflation and output return to the original long-run equilibrium values
• B)inflation is permanently increased,while output returns to potential output
• C)output returns to potential output,while inflation may be higher or lower than its initial value
• D)inflation is permanently reduced,while output returns to potential output
• E)none of the above

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Definitions:

Passion

Intense, driving, or overmastering feeling of enthusiasm or desire for something.

Obsession

Obsession is an intense or excessive preoccupation with a particular idea, object, or activity.

Effective Discipline

An approach to managing behavior that is focused on teaching and guiding rather than punishment, aiming to promote self-control and appropriate conduct.

Clear Guidelines

Explicitly stated and easily understandable rules or instructions designed to direct behavior or processes.