A Supply Shock Causes the Long-Run Aggregate Supply Curve to Shift

question 211

True/False

A supply shock causes the long-run aggregate supply curve to shift left,decreasing the price level.

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Definitions:

Mandatory

Required or obligatory; something that must be done or adhered to.

Optional

Referring to a choice or discretion available in a process or decision, where participation or selection is not mandatory.

Receivable

An amount of money owed to a business by its customers or clients for goods or services provided on credit.

Hedging Instruments

Financial contracts used to offset potential losses or gains that may be incurred by an companion investment, effectively reducing risk.