If There Is a Favourable Supply Shock, Which of the Following

question 116

Multiple Choice

If there is a favourable supply shock, which of the following will most likely happen?

• A)The aggregate supply curve and the short-run Phillips curve will both shift right.
• B)The aggregate supply curve and the short-run Phillips curve will both shift left.
• C)The aggregate supply curve will shift right, and the short-run Phillips curve will shift left.
• D)The aggregate supply curve will shift left, and the short-run Phillips curve will shift right.

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Definitions:

Specific Object

A clearly defined item or entity that can be identified or distinguished from others.

Generalized Feelings

Broad emotional states or attitudes that can influence an individual's perception and behavior across different situations.

Emotions

Complex psychological states that involve an individual's subjective experience, physiological response, and outward expression, influencing thought and behavior.

Demanding Customer

A customer who has high expectations and requirements, often needing more attention, support, and services than the average customer.