Faced with an Adverse Supply Shock, the Economy Experiences an Aggregate-Supply

question 19

Multiple Choice

Faced with an adverse supply shock, the economy experiences an aggregate-supply curve shift to the:

• A)left, and this shift is associated with a shift in the short-run Phillips curve to the left
• B)left, and this shift is associated with a shift in the short-run Phillips curve to the right
• C)right, and this shift is associated with a shift in the short-run Phillips curve to the right
• D)right, and this shift is associated with a shift in the short-run Phillips curve to the left

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Definitions:

Lightning Strikes

Natural, electrical discharges of very short duration and high voltage between a cloud and the ground, or within a cloud.

Humour

A cognitive process of perceiving and expressing what is amusing, comical, or laugh-inducing.

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Refers to how well the immune system operates to defend the body against infections and diseases.

Negative Emotional Responses

Reactions characterized by feelings such as sadness, anger, fear, or disgust, typically as a result of stimuli perceived as negative or threatening.