Multiple Choice
Which of the following is true of a beneficial supply shock?
A) It could lead to a lower price level.
B) If the economy were initially in equilibrium,such a shock would create a contractionary gap.
C) It will permanently decrease the economy's price level.
D) It will cause the aggregate demand curve to shift rightward.
E) It will cause the aggregate demand curve to shift leftward.
Correct Answer:

Verified
Correct Answer:
Verified
Q32: Given the aggregate demand curve,an increase in
Q52: Exhibit 10-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 10-4
Q53: A beneficial supply shock would shift the<br>A)long-run
Q54: Suppose that the real wage remained unchanged
Q55: If the actual price level is higher
Q56: Exhibit 10-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 10-5
Q58: Exhibit 10-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 10-2
Q62: If the expected price level falls below
Q72: Which of the following is true in
Q129: The situation in which actual output exceeds