Please highlight the correct answer for each question and explian why it is correct Which of the following is an example of a demand shocka large oil-price increasethe introduction and greater availability of credit cardsO a drought that destroys agricultural cropsO unions obtain a substantial wage increase Starting from a long run equilibrium, without any policy intervention, the long run impact of atemporary adverse supply shock is that prices willreturn to the old level and output will be permanently lower.be permanently higher and output will be permanently lower.be permanently higher and output will be restored to its long run level.return to the old level and output will be restored to its long run level.

As the demand for goods and services is being done by individuals. And people supplies various…

Which of the following is an example of a demand shock a large oil-price increase the introduction and greater availability of credit cards a drought that destroys agricultural crops unions obtain a substantial wage increase

Which of the following is an example of a demand shock a large oil-price increase the introduction and greater availability of credit cards a drought that destroys agricultural crops unions obtain a substantial wage increase

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Aggregate Demand And Supply

Section14.A: The Self Correcting Aggregate Demand And Supply Model

Problem 19SQ

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Question

Please highlight the correct answer for each question and explian why it is correct

Which of the following is an example of a demand shock
a large oil-price increase
the introduction and greater availability of credit cards
O a drought that destroys agricultural crops
O unions obtain a substantial wage increase

Starting from a long run equilibrium, without any policy intervention, the long run impact of a
temporary adverse supply shock is that prices will
return to the old level and output will be permanently lower.
be permanently higher and output will be permanently lower.
be permanently higher and output will be restored to its long run level.
return to the old level and output will be restored to its long run level.

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