A Negative Supply Shock in the Short Run Causes

question 179

Multiple Choice

A negative supply shock in the short run causes

• A)the aggregate supply curve to shift to the left.
• B)the price level to fall.
• C)unemployment to fall.
• D)equilibrium real GDP to rise.

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Definitions:

Normal Distribution

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place in the middle of the range.

Experimenter Bias

A form of bias in research where the expectations or preferences of the researcher inadvertently affect the outcome of the study.

Placebo Effect

The phenomenon where an individual experiences a perceived improvement in condition because they believe they are receiving treatment, despite the treatment having no therapeutic effect.

Double-Blind Research

A scientific study method where both the participants and the experimenters are unaware of who is receiving the experimental treatment to prevent bias.