Because of a Supply Shock, in the Short-Run

question 69

Multiple Choice

Because of a supply shock, in the short-run:

• A)the aggregate supply curve shifts to the left.
• B)the price level falls.
• C)unemployment falls.
• D)equilibrium real GDP rises.

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Definitions:

Control Chart

A graphical tool used in quality control processes to monitor a process and indicate when it is going out of predetermined control limits.

Upper Control Limit

The highest value on a control chart that signals the process is still within acceptable limits before corrective actions are deemed necessary.

Standard Deviation

A metric for gauging the extent of fluctuation or scatter in a sequence of values.

Type II Error

A statistical error that occurs when a researcher fails to reject a false null hypothesis, missing an actual effect.