Multiple Choice
Which of the following would be classified as a negative supply shock?
A) An increase in the price of oil
B) An increase in government purchases
C) An increase in export demand
D) Either an increase in the price of oil or an increase in government purchases
Correct Answer:

Verified
Correct Answer:
Verified
Q5: The effect of a decrease in import
Q7: Increases in potential output shift:<br>A)The long-run aggregate
Q8: Disinflation occurs when:<br>A)The inflation rate is negative<br>B)The
Q9: If monetary policymakers respond aggressively to current
Q11: Monetary policymakers can take advantage of the
Q32: Use the long-run model presented in Chapter
Q34: Suppose that consumer and business confidence fall.
Q39: When a negative supply shock occurs it
Q77: Does an increase in the rate of
Q95: Explain why understanding short-run fluctuations in output