Multiple Choice
Isolated negative aggregate supply shocks,in the absence of monetary validation,will
A) eventually be self-correcting as wages slowly fall.
B) never be self-correcting without government policy to expand the money supply.
C) be self-correcting only if the aggregate demand curve shifts.
D) result in a permanent output gap.
E) have no short-run or long-run effects.
Correct Answer:

Verified
Correct Answer:
Verified
Q81: Suppose there is an inflationary gap,and the
Q82: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 29-2 Refer
Q83: Suppose the NAIRU for Canada is 6%,the
Q84: What does the term NAIRU stand for?<br>A)non-accelerating
Q85: Canada's actual rate of inflation is fairly
Q87: The first OPEC oil-price shock in 1973
Q88: Suppose economists were able to measure frictional
Q89: The three figures below show the phases
Q90: The three figures below show the phases
Q91: In general,the sacrifice ratio will be smaller,the<br>A)shorter