A Beneficial Supply Shock Such as a Breakthrough in Technology

question 72

Multiple Choice

A beneficial supply shock such as a breakthrough in technology _____

• A) lowers the price level and increases output.
• B) lowers the price level and decreases output.
• C) raises the price level and increases output.
• D) raises the price level and decreases output.
• E) has no effect on either the long-run or the short-run aggregate supply curves.

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Definitions:

Disability

A physical or mental condition that limits a person's movements, senses, or activities, affecting their daily life and participation in society.

Excess Rumination

The tendency to overthink or obsessively think about situations, often leading to increased stress or anxiety.

Mania

A mental state characterized by extremely high energy levels, euphoria, hyperactivity, and a decreased need for sleep, often seen in bipolar disorder.

Euphoria

A feeling or state of intense excitement and happiness.