Supply Shocks Always Cause Short-Run Aggregate Supply to

question 47

Multiple Choice

Supply shocks always cause short-run aggregate supply to

• A) remain unchanged in both the short run and the long run.
• B) decrease in both the short run and the long run.
• C) decrease in the short run and increase in the long run.
• D) increase in both the short run and the long run.
• E) return to its original position in the long run.

---

Definitions:

Running Back

A position in American and Canadian football where the player is part of the offensive team and is responsible for running with the ball.

60 Percent Rule

A guideline suggesting that up to 60% of an individual's gross income should be allocated towards fixed expenses and necessities.

Numerical Dividing Line

A threshold or boundary defined by a specific numerical value or range.

Many

A term indicating a large number of items, people, or entities in a given context.