A negative supply shock in the short run causes
A) unemployment to fall. B) the aggregate supply curve to shift to the left.
C) equilibrium real GDP to rise. D) the price level to fall.
B
You might also like to view...
Immigration significantly contributed to economic growth in the U.S. throughout the entire period between Independence and the Civil War
Indicate whether the statement is true or false
Sara's income is $500, the price of X is $6, and the price of Y is $4. Based on these prices and income, Sara buys 120 units of X and 70 units of Y. Call this combination of X and Y "bundle K." At bundle K, Sara's marginal rate of substitution is 2. Given these prices and income, what is Sara's equilibrium consumption of X? Briefly explain your reasoning.
What will be an ideal response?
Many nations have formed customs unions that ended tariffs and trade restrictions among its members, and adopted uniform tariffs for nonmember countries. Which of the following is a successful example of such a customs union?
(A) Asia-Pacific Economic Cooperation (APEC) (B) World Trade Organization (WTO) (C) European Union (EU) (D) North American Free Trade Agreement (NAFTA).
If this firm were a perfect competitor, at what price would it charge in the long run?
A. $10.10 B. $12.80 C. $14.20 D. $15.90