A Favorable Supply Shock Will Cause the Price Level

question 45

Multiple Choice

A favorable supply shock will cause the price level

• A)and output to rise.
• B)and output to fall.
• C)to rise and output to fall.
• D)to fall and output to rise.

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Definitions:

External Consequences

Outcomes that occur as a result of an action that affect the external environment or other people, beyond the individual who undertook the action.

Free Will

The concept that humans have the capacity to make choices and decisions independently of natural, social, or divine constraints.

Positive Outcomes

Favorable or beneficial results or effects of an action, behavior, or procedure.

Neutral Outcomes

Results or consequences of an action that neither significantly benefit nor harm the situation or the individuals involved.