An example of an aggregate supply shock is
A) the cutoff of oil by the OPEC nations in the early 1970s.
B) inflation caused by a surge in demand.
C) the increase in the labor force due to the baby-boomer generation reaching working age.
D) the increase in candy sales every February.
A
You might also like to view...
Refer to Figure 18.2. In autarky, the maximum amount of spears that Macadamia can produce is
A) 40. B) 100. C) 120. D) 160.
Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?
A) The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages. B) The aggregate demand curve shifts to the right during most periods. C) Aggregate demand and potential real GDP decrease continuously. D) Potential real GDP increases continuously.