A Negative Supply Shock in the Short Run Causes

question 214

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.
• E)potential GDP to rise.

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Definitions:

Financial Returns

The financial gains or profits derived from an investment or business activity, expressed as a percentage of the investment's original cost.

Productivity-Based Returns

Financial returns or outcomes that are directly linked to the productivity or efficiency improvements within an organization or process.

Forecast Human Capital

The process of predicting the future needs for and supply of workers, based on business and economic trends.

Business Success

The achievement of desired financial and operational goals within a business, often measured by profitability, growth, and market share.