Which of the following would not be associated with a favorable supply shock?
A)the short-run Phillips curve shifts left
B)unemployment falls
C)the price level rises
D)output rises.

Question

Quizplus · Accepted Answer

A favorable supply shock would typically result in lower production costs and increased output, leading to lower unemployment and an overall increase in economic activity. Option C, stating that the price level rises, is not associated with a favorable supply shock as it would indicate higher inflationary pressures and potentially decrease the overall purchasing power of consumers.

Which of the Following Would Not Be Associated with a Favorable