A supply shock
a. is usually caused by a change in the money supply
b. is any event that causes the aggregate supply curve to shift
c. is any event caused by a change in the price level
d. is usually good news for the economy
e. always leads to an increase in the interest rate
B
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All games have which features?
A) prices, rules, and payoffs B) rules, markets, and prices C) rules, strategies, and payoffs D) rules, strategies, and costs E) equilibrium, prices, and quantities
Graphically, all else constant, a decrease in the price of labor would be illustrated by:
A) a parallel shift of the isocost line in toward the origin. B) rotating the isocost line away from the origin along the labor axis. C) a parallel shift of the isocost line away from the origin. D) rotating the isocost line in toward the origin along the capital axis.
Suppose that the percentage change in supply is 50%, the price elasticity of demand is 4, and the price elasticity of supply is 1. The equilibrium price will:
A. decrease by 10 percent. B. increase by 55 percent. C. increase by 10 percent. D. decrease by 55 percent.
Wealth or net worth is equal to
A. assets plus liabilities. B. assets minus liabilities. C. income minus savings. D. consumption plus changes in net worth.