Which of the following would be considered a negative real supply shock?
A) a relaxation of government environmental regulations
B) a permanent increase in the price of energy
C) a decrease in the money supply
D) a decrease in aggregate demand
B
Economics
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An increase in the real interest rate is an example of a
A) pure substitution effect. B) substitution effect and a positive income effect. C) substitution effect and a negative income effect. D) substitution effect and an income effect whose sign depends on whether the consumer is initially a borrower or a lender.
Economics