An Adverse Supply Shock Will Shift Short-Run Aggregate Supply

question 131

Multiple Choice

An adverse supply shock will shift short-run aggregate supply

• A)right, making prices rise.
• B)left, making prices rise.
• C)right, making prices fall.
• D)left, making prices fall.

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Definitions:

Shocks

Sudden, unexpected events or disturbances that can cause significant changes or adverse effects in a system or organism.

Shock Plate

A device typically used in experimental research to deliver a shock to an animal subject as a form of aversive stimulus.

Obeyed

The action of following the commands, restrictions, or wishes of someone or something with authority.

Milgram Shock Experiment

An experimental social psychology study by Stanley Milgram measuring the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.