The Long-Run Adjustment to a Negative Supply Shock Results in

question 137

Multiple Choice

The long-run adjustment to a negative supply shock results in

• A)the short-run aggregate supply curve shifting to the right.
• B)the price level rising.
• C)unemployment rising.
• D)workers being willing to accept higher wages.

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Definitions:

Diversification

A risk management strategy involving entering into new markets or adding new products to reduce dependency on a single market or product.

Product Development

The process of creating new products or enhancing existing ones, from concept through design, testing, and launching to the market.

Market Development

The process of expanding into new markets to increase sales and profitability, often by identifying and entering new geographic or demographic segments.

Market Penetration

The extent to which a product or service is recognized and bought by customers in a particular market.