Any event that shifts the short-run aggregate supply curve is called
A)accommodation.
B)stop-go policy cycle.
C)stagflation.
D)a supply shock.

Question

Quizplus · Accepted Answer

A supply shock is any unexpected event that causes a sudden shift in the short-run aggregate supply curve, either to the left or to the right. This can be caused by natural disasters, political turmoil, changes in energy prices, or other factors, and can have significant effects on output, employment, and prices in the economy. Accommodation refers to a policy of accommodating inflation rather than fighting it. The stop-go policy cycle is a pattern of alternating stimulus and restraint in macroeconomic policy. Stagflation refers to a combination of high inflation and low growth or recession in the economy.

Any Event That Shifts the Short-Run Aggregate Supply Curve Is