Adverse Shocks Such as the Crop Failures of 1972-1973 and the Oil

question 24

Multiple Choice

Adverse shocks such as the crop failures of 1972-1973 and the oil price increases of 1974 and 1979 pushed the economy's

• A)aggregate supply curve outward.
• B)Phillips curve inward toward the origin.
• C)aggregate supply curve inward.
• D)aggregate demand curve inward.

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Definitions:

Flexible Policy

A strategy or approach that allows for adjustments and modifications in response to changing conditions or information.

Liberal Credit Terms

Credit conditions that are lenient, offering borrowers lower interest rates or extended repayment terms.

Restrictive Policy

A policy intended to limit or regulate certain activities, often used in the context of fiscal or monetary policy to control economic variables.

Wages

Payments made by employers to employees, usually at hourly, daily, or piecework rates, for the labor or services provided.