Multiple Choice
Which one of the following would constitute a positive supply shock?
A) The supply of money in the economy increases.
B) Discretionary government spending increases.
C) The price of oil decreases as a result of conflict or war.
D) The federal income tax decreases.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q50: When an economy is operating on the
Q51: If the short-run output is more than
Q52: Which one of the following can lead
Q53: If the short-run macroeconomic equilibrium occurs in
Q54: The short-run aggregate supply curve is perfectly
Q56: The marginal propensity to consume for an
Q57: If the marginal propensity to save for
Q58: In an economy that has no leakages
Q59: Use Figure: Long-Run Aggregate Supply Curve. The
Q60: Aggregate demand includes the demand for all