If Prices and Wages Are Not Flexible,an Adverse Supply Shock

question 73

Multiple Choice

If prices and wages are not flexible,an adverse supply shock is most likely to be followed by

• A)a rightward shift of the aggregate supply curve
• B)a rightward shift of the aggregate demand curve
• C)a leftward shift of the aggregate supply curve
• D)a leftward shift of the aggregate demand curve
• E)persistent unemployment

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Definitions:

Left Hemisphere

The half of the brain that is typically responsible for analytical tasks, language processing, and logical reasoning.

Amygdala

A part of the brain's limbic system, instrumental in processing emotions, emotional behavior, and motivation, particularly those related to survival and fear responses.

Olfactory Bulb

A brain structure involved in the sense of smell, processing information from olfactory receptor cells.

Occipital Lobe

The region of the cerebral cortex located at the back of the brain, primarily involved in processing visual information.