Which of the Following Is Not Associated with an Adverse

question 29

Multiple Choice

Which of the following is not associated with an adverse supply shock?

• A)the short-run Phillips curve shifts left
• B)unemployment rises
• C)the price level rises
• D)output falls

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Definitions:

Negative Externalities

Unintended and unfavourable outcomes or costs imposed on a third party not involved in a transaction or activity.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often leading to underproduction of the good or service in absence of intervention.

Education

The systematic process of facilitating learning, acquiring knowledge, skills, values, and attitudes.