Ceteris Paribus,in the Long Run,a Negative Supply Shock Causes

question 273

Multiple Choice

Ceteris paribus,in the long run,a negative supply shock causes

• A)the long-run aggregate supply curve to shift to the left.
• B)the price level to rise initially,and then return to its lower level.
• C)unemployment to fall below its short-run level.
• D)equilibrium real GDP to fall.

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Definitions:

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

Photograph

A picture made using a camera, where light is captured and recorded on a light-sensitive surface.

Sensory Memory

The shortest-term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended, acting as a buffer for stimuli received through the senses.

Proactive Interference

Memory problem that occurs when older information prevents or interferes with the learning or retrieval of newer information.