Suppose the Economy Is Initially in Long-Run Equilibrium and Then

question 17

Multiple Choice

Suppose the economy is initially in long-run equilibrium and then it experiences a supply shock in the form of sharply higher energy prices.Which of the following is true?

• A)The short-run aggregate supply curve shifts leftward and the long-run supply curve shifts rightward.
• B)The short-run aggregate supply curve shifts rightward and the long-run supply curve shifts rightward.
• C)The short-run aggregate supply curve does not shift and the long-run aggregate supply curve shifts rightward.
• D)The short-run aggregate supply curve shifts rightward but the long-run aggregate supply curve does not shift.
• E)There will be a movement to the left along the aggregate demand curve.

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Definitions:

Eukaryotes

Organisms whose cells contain a nucleus and other membrane-bound organelles, including animals, plants, fungi, and protists.

Phosphorylation

The introduction of a phosphate group into an organic molecule. See kinases.

ATP

Adenosine triphosphate, a high-energy molecule used for energy storage and transfer within cells.

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, coupled with the transfer of protons across a membrane, generating ATP.