A Negative Supply Shock in the Short Run Causes

question 179

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.

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Definitions:

FIFO Perpetual

A method of inventory valuation where goods are sold based on the order they were acquired, constantly updated to reflect transactions in real time.

LIFO Periodic

An inventory valuation method where the last items to be added to inventory are the first ones to be removed, applied at the end of an accounting period.

Average Cost

refers to the total cost of production divided by the number of units produced, also known as unit cost.

Cost Of Goods Sold

Cost of goods sold (COGS) is the direct cost attributed to the production of the goods sold by a company, including material and labor costs, but excluding indirect expenses.