The Short-Run Effects of a Favorable Supply Shock Will Include

question 29

Multiple Choice

The short-run effects of a favorable supply shock will include

• A) an increase in the general level of prices and a decrease in real output.
• B) an increase in the general level of prices and an increase in real output.
• C) a decrease in the general level of prices and a decrease in real output.
• D) a decrease in the general level of prices and an increase in real output.

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Definitions:

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A defense mechanism where an individual unconsciously replaces an undesirable or anxiety-inducing emotion or desire with its exact opposite.

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