What Would NOT Be Associated with a Favourable Supply Shock

question 155

Multiple Choice

What would NOT be associated with a favourable supply shock?

• A) short-run Phillips curve shifts right
• B) unemployment rises
• C) price level falls
• D) output falls

---

Definitions:

Potential Crises

Refers to situations or events that have the capacity to lead to an emergency or a critical condition, requiring immediate attention to prevent or mitigate disaster.

Unforeseeable

Impossible to predict or anticipate due to lack of information or inherent unpredictability.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution, due to limitations in time, resources, or information.

Optimal

describes the most advantageous condition or level of efficiency that can be achieved under specific circumstances.