Multiple Choice
Which of the following mechanisms helps output to return to potential after a supply shock?
A) A change in the nominal wage
B) Changes in business decision making strategies
C) Changes in the capital stock
D) The rigidity of the price level
E) Changes in inventories.
Correct Answer:

Verified
Correct Answer:
Verified
Q40: An increase in output will tend to<br>A)
Q41: ]Which of the following would not cause
Q42: Which of the following is not an
Q43: A decrease in the price level<br>A) decreases
Q44: In the short run,a contractionary fiscal policy
Q46: After a negative demand shock,what are the
Q47: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3972/.jpg" alt=" -Refer to Figure
Q48: A movement along the AD curve down
Q49: A negative demand shock<br>A) shifts the AD
Q50: If the government announces a big tax