If There Is an Adverse Supply Shock,then

question 24

Multiple Choice

If there is an adverse supply shock,then

• A)unemployment rises and the short-run Phillips curve shifts right.
• B)unemployment rises and the short-run Phillips curve shifts left.
• C)unemployment falls and the short-run Phillips curve shifts right.
• D)unemployment falls and the short-run Phillips curve shifts left.

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Definitions:

Cognitive Dissonance

The psychological stress experienced when a person holds two conflicting thoughts, beliefs, attitudes, or values.

Attitudinal Shift

A change in belief or perspective often resulting from information, experience, or persuasion.

Cheating

Engaging in dishonest or unfair actions to gain an advantage, commonly associated with academic, relationship, or sport contexts.

Dissonance Magnitude

Refers to the degree of conflict or discomfort experienced when holding two or more contradictory beliefs, values, or attitudes.