How Will an Adverse Supply Shock Shift the Short-Run Aggregate-Supply

question 119

Multiple Choice

How will an adverse supply shock shift the short-run aggregate-supply curve, and what will be the effect on prices?

• A) It will shift the short-run aggregate-supply curve right, making prices rise.
• B) It will shift the short-run aggregate-supply curve left, making prices rise.
• C) It will shift the short-run aggregate-supply curve right, making prices fall.
• D) It will shift the short-run aggregate-supply curve left, making prices fall.

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