Suppose an Economy Is Initially in Long-Run Equilibrium and It

question 29

Multiple Choice

Suppose an economy is initially in long-run equilibrium and it then experiences a supply shock in the form of exceptionally high energy prices.Which of these will be true in this economy?

• A)The short-run aggregate supply curve will shift leftward,and the long-run supply curve will shift rightward.
• B)The short-run aggregate supply curve and the long-run supply curve will shift rightward.
• C)The short-run aggregate supply curve will not shift,and the long-run aggregate supply curve will shift rightward.
• D)The short-run aggregate supply curve will shift rightward,but the long-run aggregate supply curve will not shift.
• E)The short-run aggregate supply curve and the long-run supply curve will shift leftward.

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Definitions:

Pay Ranges

The spectrum of compensation offered for different roles within an organization, usually determined by job function and experience level.

Blue-Collar Jobs

Occupations typically involving manual labor and often paying hourly wages.

Pay Policy Line

A graphed line showing the mathematical relationship between job evaluation points and pay rate.