How Will an Adverse Supply Shock Shift the Short-Run Aggregate-Supply

question 119

Multiple Choice

How will an adverse supply shock shift the short-run aggregate-supply curve, and what will be the effect on prices?

• A) It will shift the short-run aggregate-supply curve right, making prices rise.
• B) It will shift the short-run aggregate-supply curve left, making prices rise.
• C) It will shift the short-run aggregate-supply curve right, making prices fall.
• D) It will shift the short-run aggregate-supply curve left, making prices fall.

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Definitions:

Insider Trading

Illegal buying or selling of a corporation's stock or other securities by individuals with access to nonpublic, material information about the company.

Tipping

Giving money to someone for their service, more than what is due for the service itself.

Stock Purchase

The act of acquiring ownership shares in a company, representing a partial ownership stake.

Written Document

refers to any expression of thoughts, ideas, or information that is recorded on a tangible medium, and can include electronic formats.