An Adverse Supply Shock Would Shift the

question 147

Multiple Choice

An adverse supply shock would shift the

• A)short-run aggregate supply curve outward but not the long-run aggregate supply curve
• B)long-run aggregate supply curve outward but not the short-run aggregate supply curve
• C)long-run aggregate supply curve inward but not the short-run aggregate supply curve
• D)short-run aggregate supply curve inward but not the long-run aggregate supply curve
• E)long-run and short-run aggregate supply curves inward

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Definitions:

Technological Change

The process through which new technologies are developed and introduced, leading to changes in productivity, efficiency, and societal impact.

Local Situation

The specific conditions and characteristics of a particular place or area, often considering social, economic, or environmental aspects.

Technological Developments

Advances in technology that lead to new products, processes, or improvements in existing products or operations.

Market Trends

The general direction in which the market moves, influenced by factors like consumer behavior, technological advancements, and economic conditions.