What Would NOT Be Associated with an Adverse Supply Shock

question 174

Multiple Choice

What would NOT be associated with an adverse supply shock?

• A) short-run Phillips curve shifts right
• B) unemployment rises
• C) price level falls
• D) output falls

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Definitions:

After-Tax Return

The net profit or loss of an investment after all taxes have been deducted.

Tax Bracket

A range of incomes taxed at a given rate by the government to implement a progressive tax system, where the rate increases as the taxable amount increases.

Dividend Yield

A ratio that compares the amount a company pays annually in dividends to the price of its shares.

Stock Price

The stock price is the cost of a single share of a number of saleable stocks of a company, derivative, or other financial asset.