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Emily Fallon
on Nov 16, 2024

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An adverse supply shock will shift short-run aggregate supply

A) right, making prices rise.
B) left, making prices rise.
C) right, making prices fall.
D) left, making prices fall.

Aggregate Supply

The aggregate amount of products and services created in an economy at a specific price level during a particular time frame.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a product or service, resulting in increased prices and reduced quantity.

Prices

The amount of money required to purchase a good, service, or asset, often influenced by supply and demand.

  • Identify the effects of supply shocks on the economy's output, inflation, and the Phillips curve.
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Karen MolinaNov 19, 2024
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