Which of the following is not associated with an adverse supply shock?
A)the short-run Phillips curve shifts left
B)unemployment rises
C)the price level rises
D)output falls

Question

Quizplus · Accepted Answer

A leftward shift of the short-run Phillips curve is associated with a favorable supply shock, not an adverse one. Choices B, C, and D are all associated with an adverse supply shock, as unemployment rises, the price level rises, and output falls.

Which of the Following Is Not Associated with an Adverse