If the Economy's AS Curve Is Upward Sloping,a Negative Shock

question 127

Multiple Choice

If the economy's AS curve is upward sloping,a negative shock to aggregate demand will result in

• A)an increase in prices and no change in real GDP.
• B)a decrease in prices but no change in real GDP.
• C)an increase in real GDP and no change in prices.
• D)an increase in both real GDP and prices.
• E)a decrease in both real GDP and prices.

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Definitions:

Guaranteed Loan

A loan backed by a third party, reducing the risk for lenders and often making it easier for borrowers to secure financing.

SBA

Refers to the Small Business Administration, a U.S. government agency that provides support to entrepreneurs and small businesses.

Venture Capital Firms

Investment companies that provide funding to start-up companies and small businesses with perceived long-term growth potential.

High-tech Industries

Sectors that are heavily involved in the development and production of technology, including computing, telecommunications, and biotechnology.