If the Short-Run Aggregate Supply Curve Is Shifting Right

question 75

Multiple Choice

If the short-run aggregate supply curve is shifting right:

• A)​the short-run Phillips curve is shifting left.
• B)​the short-run Phillips curve is shifting right.
• C)​the long-run Phillips curve is shifting right.
• D)​the long-run Phillips curve is shifting left.

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Definitions:

Well-Diversified Portfolios

Investment portfolios constructed to spread out risk by including a variety of asset classes and securities.

Mispriced Securities

Financial instruments whose market price does not accurately reflect their intrinsic value, potentially leading to buying or selling opportunities.

Risk Arbitrage

Speculation on perceived security mispricing, often in connection with merger and acquisition targets.

One-Factor APT

A financial model that describes the relationship between a security's returns and a single factor affecting all securities, used to predict performance.