Suppose the Economy Is Hit by a Shock and We

question 105

Multiple Choice

Suppose the economy is hit by a shock and we observe that the price level has decreased whereas real GDP has increased.We can conclude that this shock was

• A)a positive AD shock.
• B)a negative AD shock.
• C)a positive AS shock.
• D)a negative AS shock.
• E)a negative technology shock.

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Definitions:

Workweek

A period of seven days typically used to refer to the days on which work is done, usually Monday through Friday in a standard full-time job.

Micrometers

Precision measurement instruments used to measure small distances, thicknesses, or diameters with extremely high accuracy.

Brake Rotor Thickness

The measurement of a brake rotor's width, crucial for effective braking and rotor integrity.

First Impression

The initial perception or judgement formed upon encountering something or someone for the first time.