The Long-Run Adjustment to a Negative Supply Shock Results in

question 137

Multiple Choice

The long-run adjustment to a negative supply shock results in

• A)the short-run aggregate supply curve shifting to the right.
• B)the price level rising.
• C)unemployment rising.
• D)workers being willing to accept higher wages.

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Definitions:

Social Loafing

The situation where persons demonstrate lower effort levels in pursuit of a goal as part of a group than they do when working individually.

Risky-Shift Effect

A phenomenon where a group collectively decides on a course of action that is riskier than the decisions that individual group members would make on their own.

Informational Influence

Informational Influence occurs when individuals conform to the behaviors or attitudes of a group to obtain and accept accurate information or because they believe the group is competent.

Groupthink

A phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.