A Supply Shock Is Defined as

question 77

Multiple Choice

A supply shock is defined as

• A) a decrease in full-employment output.
• B) a surprise event that changes the firm's production costs.
• C) a reduction in aggregate demand that has a negative impact on the firm's revenue.
• D) a sudden upward movement along the short-run aggregate supply curve.
• E) an attempt by employees to negotiate a wage increase.

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Definitions:

Required Return

The minimum gain necessary from an investment to justify its risk, similar to the return requirement but specific to individual investment criteria.

Assets

Assets of economic worth owned or managed by a person, business, or nation, anticipated to deliver benefits in the future.

Indirect Cost

Costs that are not directly accountable to a cost object (such as a particular project, facility, function, or product), including overheads and administrative expenses.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, leading to asset liquidation or reorganization.