A Negative Supply Shock in the Short Run Causes

question 179

Multiple Choice

A negative supply shock in the short run causes

• A)the aggregate supply curve to shift to the left.
• B)the price level to fall.
• C)unemployment to fall.
• D)equilibrium real GDP to rise.

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Definitions:

Stability

The condition of being steady, constant, and free from change or variation, often aimed for in both economic and organizational contexts.

Progression Principle

A concept in fitness and training that emphasizes the need for increasing the intensity and workload over time to achieve continued improvement.

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Made active or operational; refers to initiating processes or mechanisms.

Motivate Behaviour

The process of encouraging actions or conduct towards achieving specific goals through incentives or psychological methods.