If There Is an Adverse Supply Shock, What Will Most

question 188

Multiple Choice

If there is an adverse supply shock, what will most likely happen?

• A) The aggregate supply curve and the short-run Phillips curve will both shift right.
• B) The aggregate supply curve and the short-run Phillips curve will both shift left.
• C) The aggregate supply curve will shift right, and the short-run Phillips curve will shift left.
• D) The aggregate supply curve will shift left, and the short-run Phillips curve will shift right.

---

Definitions:

Null Hypothesis

A default statement that indicates no effect or no difference, used as a starting point for statistical hypothesis testing.

Directional Hypothesis

A hypothesis that outlines the anticipated direction of the difference or relationship.

Critical Value

A threshold in a statistical test that defines the boundary for deciding whether an observed statistic is extreme enough to reject the null hypothesis.

Alpha

A threshold value used in hypothesis testing to determine the significance level at which the null hypothesis is rejected in favor of the alternative hypothesis.