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:

Novelty

The quality of being new, original, or unusual, often sparking interest or attention.

Complexity

This concept refers to the state or quality of being intricate or complicated, often used in describing systems, problems, or organizations that possess multiple components which interact in varied ways.

Employee Involvement

A workplace strategy designed to improve commitment and productivity by enabling employees to contribute ideas and participate in decision-making.

Decision Making Process

A step-by-step approach to selecting a course of action from multiple alternatives, often involving problem identification, analysis, and choosing a solution.