In the Short Run, a Supply Shock That Shifts the Short-Run

question 349

Multiple Choice

In the short run, a supply shock that shifts the short-run aggregate supply curve leftward____________ Real GDP and ____________ the price level.

• A) decreases; raises
• B) decreases; lowers
• C) increases; lowers
• D) increases; raises

---

Definitions:

Domestic Output

The total value of all goods and services produced within a country's borders in a specific time period.

Exported Chairs

Chairs that are manufactured in one country and sold to customers in foreign countries.

Purchasing Power

The capacity of an individual or group to buy goods and services with a given amount of currency, influenced by inflation and economic conditions.

Imported Goods

Products or commodities that are brought into a country from abroad for sale.