A Negative Supply Shock in the Short Run Causes

question 179

Multiple Choice

A negative supply shock in the short run causes

• A)the aggregate supply curve to shift to the left.
• B)the price level to fall.
• C)unemployment to fall.
• D)equilibrium real GDP to rise.

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Definitions:

Acetylcholine

A neurotransmitter in both the peripheral and central nervous system that plays a key role in muscle activation and memory functions.

Skeletal Muscles

The muscles attached to bones that are responsible for voluntary movements of the body.

GABA

Gamma-Aminobutyric Acid, an inhibitory neurotransmitter in the brain that helps regulate nerve cell activity.

Hebbian Learning Rule

A principle describing how neurons might adapt during learning, suggesting that when a neuron frequently assists in firing another, the connection between them strengthens.