In the Short Run, a Supply Shock That Shifts the Short-Run

question 21

Multiple Choice

In the short run, a supply shock that shifts the short-run aggregate supply curve leftward ________ real GDP and ________ the price level.

• A) increases; raises
• B) decreases; raises
• C) increases; lowers
• D) decreases; lowers

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Definitions:

Greater Power

Refers to the superior ability or authority of an individual or group to influence or control outcomes in their favor.

Controlled Processing System

A cognitive system involving conscious, deliberate thought and attention for complex tasks or decisions.

Rigid

Describes something or someone that is inflexible, strict, or unable to change.

Objective Power

The ability to influence others or affect outcomes based on one's position or resources, independently of personal characteristics.