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Macroeconomics Midterm - Part 3 of 3!
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Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
Problem 10
Problem 11
Problem 12
Problem 13
Problem 14
Problem 15
Problem 16
Problem 17
Problem 18
Problem 19
Problem 20
Macroeconomics Midterm - Part 3 of 3!
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11. Unemployment and Inflation / Demand-Pull and Cost-Push Inflation / Problem 19
Problem 19
A sudden increase in raw material prices causes a supply shock. What is the likely impact on the supply curve and equilibrium price?
A
The supply curve remains constant, and equilibrium price decreases.
B
The supply curve shifts right, and equilibrium price decreases.
C
The supply curve shifts left, and equilibrium price decreases.
D
The supply curve shifts left, and equilibrium price increases.
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