Ceteris Paribus,in the Long Run,a Negative Supply Shock Causes

question 273

Multiple Choice

Ceteris paribus,in the long run,a negative supply shock causes

• A)the long-run aggregate supply curve to shift to the left.
• B)the price level to rise initially,and then return to its lower level.
• C)unemployment to fall below its short-run level.
• D)equilibrium real GDP to fall.

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Definitions:

More Negative

An expression indicating an increase in negative attributes or effects.

Less Negative

Refers to a situation or condition that is not as adverse or undesirable as it could be; somewhat improved.

Action Potential

A temporary reversal in the electrical potential across a plasma membrane that occurs when a cell has been activated by a stimulus, essential for nerve impulse conduction.

Electrical Charge

A physical property of particles or objects that causes them to attract or repel each other due to the presence of electric charge, either positive or negative.