Multiple Choice
Which of the following is the most likely medium-run outcome of an adverse supply shock?
A) an increase in consumer prices and a higher level of real GDP
B) a decrease in real GDP
C) an increase in real wage rates
D) an increase in frictional unemployment
E) an increase in nominal GDP with real GDP remaining the same
Correct Answer:
Verified
Correct Answer:
Verified
Q31: Political business cycles consist of fluctuations caused
Q32: In the long run, what event(s) can
Q33: The sacrifice ratio is defined as<br>A)the percentage
Q34: If the government stimulates aggregate demand in
Q35: Assume the Fed implements restrictive monetary policy.Which
Q37: The inverse relationship between inflation and unemployment
Q38: The newer view of the Phillips curve
Q39: The fact that nominal wages are fixed
Q40: The misery index for the United States<br>A)increased
Q41: Assume the economy is at full employment.If