When a Supply Shock Is Permanent

question 2

Multiple Choice

When a supply shock is permanent

• A)only the long-run aggregate supply curve shifts leftward.
• B)only the short-run aggregate supply curve shifts leftward.
• C)both the long-run and short-run aggregate supply curves shift leftward.
• D)there are no shifts in either the long-run or short-run aggregate supply curve.

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Definitions:

Psychodynamic

A psychological perspective that focuses on the dynamic interplay between conscious and unconscious processes in shaping personality.

Exposure Therapy

A psychological treatment method that involves confronting fears directly and in a controlled manner to reduce the fear response over time.

Dread

An intense fear or apprehension about something that is about to happen or that might happen.

Subsides

Decrease in intensity or severity; often used to describe the diminishing of symptoms or conditions over time.