Suppose There Is a Temporary Supply Shock Because of a War

question 40

Multiple Choice

Suppose there is a temporary supply shock because of a war in the Middle East,then ________.

• A)this would constitute a cost push shock due to a restriction in the supply of oil
• B)the AS curve would shift to the left
• C)this could theoretically lead to stagflation
• D)all of the above
• E)none of the above

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Definitions:

Cognitive Development

The process by which individuals acquire, develop, and utilize thinking skills, including perception, memory, understanding, and problem-solving, throughout their lifespan.

Procedural Knowledge

Describes the often unconscious, nondeclarative knowledge of how to do things that underlies many physical skills.

Knot Tying

The act of securely fastening or binding objects together using rope, string, or another flexible material through various techniques and loops.