9. Shocks Which of the following can be inflationary? a. Positive supply shocks

Question

9. Shocks Which of the following can be inflationary?

a. Positive supply shocks and negative demand shocks

b. Negative supply shocks and positive demand shocks

c. Negative supply shocks and negative demand shocks

d. Positive supply shocks and positive demand shocks

10.

Stimulative monetary policy would be an appropriate response to

I. a positive demand shock

II. a negative demand shock

III. a negative supply shock

III only

I and II only

II only

I only

Stimulative monetary policy would be an appropriate response to

I. a positive demand shock

II. a negative demand shock

III. a negative supply shock

Explanation / Answer

9. D . positive supply shocks and positive demand shocks

10. I only

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