Which of the Following Is Correct If There Is a Favorable

question 33

Multiple Choice

Which of the following is correct if there is a favorable supply shock?

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

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Definitions:

Production Cost

The total cost incurred by a business to produce goods or services, including labor, materials, and overhead.

Special Order

An order for goods or services that is outside the scope of regular operations, often requiring customization or special handling.

Capacity

The highest level of production a business can maintain to produce a good or offer a service.

Sales Price

The sales price is the amount a customer pays for a product or service, determining the revenue generated from sales transactions.