Multiple Choice
Given the aggregate demand curve,a beneficial supply shock will:
A) increase potential output and the price level.
B) decrease potential output and the price level.
C) increase potential output and decrease the price level.
D) decrease potential output and increase the price level.
E) cause no change in potential output or the price level.
Correct Answer:

Verified
Correct Answer:
Verified
Q103: When the economy's actual price level exceeds
Q104: If resource suppliers and demanders find out
Q105: The rate at which aggregate supply changes
Q106: An increase in aggregate demand in the
Q107: The figure below shows the short-run aggregate
Q109: Suppose Jack's salary increased from $100,000 to
Q110: Which of these changes is observed in
Q111: When the economy produces its potential output,_
Q112: In the figure given below,when aggregate supply
Q113: The figure below shows the short-run aggregate