An Event That Directly Affects Firms' Costs of Production and Thus

question 52

Multiple Choice

An event that directly affects firms' costs of production and thus the prices they charge is called

• A)a Phillips contraction.
• B)an inflationary spiral.
• C)a demand shock.
• D)a supply shock.

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Definitions:

Emotional Impact

The profound effect or influence that an experience, event, or communication has on a person's emotions or feelings.

Finance Policies

Rules, regulations, and practices that govern the management, administration, and planning of financial resources.

Kahneman and Tversky

Two psychologists renowned for their contributions to the understanding of judgment and decision-making psychology, alongside their work in behavioral economics.

Sure Thing

A situation or outcome that is guaranteed or considered to be a certainty.