An Adverse Aggregate Supply Shock

question 138

Multiple Choice

An adverse aggregate supply shock

• A)automatically shifts the aggregate demand curve rightward.
• B)causes the Phillips Curve to shift leftward and downward.
• C)can be caused by a boost in the rate of growth of productivity.
• D)can cause stagflation.

---

Definitions:

Compounded Monthly

This refers to the method by which interest earnings are calculated on a monthly basis, with each month's interest being added to the principal for the calculation of the next month's interest.

Loan Rate

The interest rate applied to the amount of money borrowed from a lender, typically expressed as an annual percentage rate (APR).

Monthly Payment

The amount that is due every month to repay a loan, typically consisting of both principal and interest components, over a set period.

Mortgage Rate

The interest rate charged on a mortgage loan, determining the cost of borrowing for purchasing real estate.