Which of the Following Would Not Be Associated with an Adverse

question 80

Multiple Choice

Which of the following would not be associated with an adverse supply shock?

• A)the short-run Phillips curve shifts left
• B)unemployment rises
• C)the price level rises
• D)output falls

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Definitions:

Resources Exchanged

The process through which different types of resources, including goods, services, information, and money, are traded or swapped among individuals, businesses, or countries.

Input Markets

Markets where firms buy resources, goods, and services that they need in order to produce outputs that will be sold in output markets.

Households Supply

Refers to the goods and services supplied by households, including labor, to the market.

Entrepreneur

An individual who initiates, manages, and assumes the risks of a business venture, aiming to transform innovations into economic goods.