In the Short Run,________

question 43

Multiple Choice

In the short run,________.

• A)cost push shocks can cause firms to raise prices
• B)workers pushing for higher wages may lead to increases in inflation
• C)the aggregate supply curve may shift to the left with increases in expected inflation
• D)all of the above
• E)none of the above

---

Definitions:

Budget Constraint

The limitations on the consumption bundles that a consumer can afford given their income and the prices of goods.

Consumption Possibilities

The set of all consumption bundles that can be consumed given a consumer’s income and prevailing prices.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford given their income and the prices of the goods.

Giffin Good

A type of good for which demand increases as its price increases, contrary to the typical law of demand.