A Temporary Adverse Supply Shock Directly Causes

question 89

Multiple Choice

A temporary adverse supply shock directly causes

• A)a downward shift of the IS curve.
• B)a shift to the left of the FE line.
• C)a downward shift of the LM curve.
• D)an upward shift of the IS curve.

---

Definitions:

Cost-plus-fixed-fee Pricing

A pricing method where the selling price is determined by adding a fixed fee to the cost of the product or service.

Cost-plus-percentage-of-cost Pricing

A pricing strategy where the selling price is determined by adding a specific percentage markup to the cost of the product or service.

Standard Markup Pricing

A strategy in pricing that involves adding a set percentage above the product's cost to calculate its retail price.

Bolt Of Fabric

A large roll of cloth or fabric that is typically measured in yards or meters, used in manufacturing and sewing industries.