If a positive permanent supply shock were to occur, the resulting equilibrium would occur at a _______ level of output and _______ price level.
A) higher; higher
B) lower; lower
C) higher; lower
D) lower; higher

Question

Quizplus · Accepted Answer

A positive permanent supply shock increases the supply of goods and services in the economy, leading to a higher level of output and a lower price level due to increased efficiency or availability of resources.

If a Positive Permanent Supply Shock Were to Occur, the Resulting