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Bingel [31]
3 years ago
7

10) When the economy suffers a temporary negative supply shock and the monetary policy makers try to stabilize economic activity

in the short run, then A) inflation rate will be higher. B) output will be at its potential. C) aggregate demand curve shifts rightward. D) all of the above. E) both A and B.
Business
1 answer:
Rama09 [41]3 years ago
3 0

Answer:

The answer is D.

Explanation:

Economy shock is when an expected shock happens to an economy. This shock can be positive or negative.

In the vein, supply shock is an unexpected event that happens to the supply of a product. It can also be positive or negative too.

Positive supply shock increases output while negative supply shock decreases output.

For a temporary negative supply shock and monetary policy makers try to stabilize economic activity in the short run, the following will occur:

1. Aggregate demand curve shifts rightward, meaning demand will rise because supply will automatically reduce. This makes demand to be higher than supply.

2. Inflation rate will be high. Because supply is reduced, price of goods will increase and this is an inflation.

3. Output will be at its potential. When an economy is close to potential output, the price will increase more than the output and aggregate demand will rises.

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The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce cyclical unemployment.

<h3>What is seasonal unemployment?</h3>
  • When the abilities that people in the economy have to provide and the skills that employers need from employees do not match, structural unemployment results.
<h3>What is frictional unemployment?</h3>
  • The time between quitting a job voluntarily and finding another is known as the frictional unemployment period.
<h3>What is natural unemployment?</h3>
  • The lowest rate of unemployment brought on by actual or voluntary economic forces is known as natural unemployment, or the natural rate of unemployment.
  • The number of persons experiencing natural unemployment indicates those who are jobless as a result of the structure of the labor force, such as those who have been displaced by technology or those who lack the necessary skills to find employment.
<h3>What is cyclical unemployment?</h3>
  • The portion of overall unemployment that is specifically caused by cycles of economic expansion and contraction is known as cyclical unemployment.
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Therefore, the development of a nationwide computerized job bank listing of all job openings would be most likely to reduce cyclical unemployment.

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brainly.com/question/305041

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