A supply shock does not occur when:
A) a drought destroys crops.
B) unions push wages up.
C) the Bank of Canada increases the money supply.
D) an oil cartel increases world oil prices.
Correct Answer:
Verified
Q27: When an aggregate demand curve is drawn
Q35: For a fixed money supply, the aggregate
Q43: Exhibit: Supply Shock Q44: Holding output, Y, fixed, a reduction in Q45: Starting from long-run equilibrium, if the velocity Q46: If the short-run aggregate supply curve is Q52: If all prices are stuck at a Q56: If the short-run aggregate supply curve is Q65: When the French money supply was reduced Q71: If the short-run aggregate supply curve is
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