A beneficial supply shock
Not what you're looking for?
Consider the attached aggregate model. Which of the following could cause equilibrium to move from point a to point b?
1. A temporary reduction in aggregate supply
2. An adverse supply shock
3. A beneficial supply shock
4. A gradual decrease in resources
Purchase this Solution
Solution Summary
A beneficial supply shock is integrated in this solution.
Solution Preview
3. A beneficial supply shock.
When the economy moves from point A to point B real GDP goes up and the ...
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.