What are supply shocks? Explain what effect adverse and favorable supply shocks have on the supply curve
What will be an ideal response?
Supply shocks are external events that shift the aggregate supply curve. Adverse supply shocks would cause aggregate supply to decrease, shifting the AS curve to the left. Favorable supply shocks would cause aggregate supply to increase, shifting the AS curve to the right.
Economics
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Given the information in Scenario 4.3, what is the point price elasticity of demand?
A) -1/3 B) -1/6 C) -1/10 D) -1/24 E) -5/24
Economics
Personal income represents what households actually receive as income, while personal disposable income nets out of personal income taxes paid to federal, state, and local governments
Indicate whether the statement is true or false
Economics