An Unexpected Event That Causes the Aggregate Demand Curve to Shift

question 357

Multiple Choice

An unexpected event that causes the aggregate demand curve to shift inward or outward is an

• A) aggregate demand shock.
• B) aggregate supply shock.
• C) aggregate supply increase.
• D) aggregate supply decrease.

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Definitions:

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in the production process.

Training

The process of enhancing the skills, capabilities, and knowledge of employees for the purpose of improving job performance.

Capital

Capital refers to financial assets or physical resources that are used in the production of goods and services, including machinery, buildings, or money invested.

Workforce

The group of people who are engaged in or available for work, either in a country or a firm.