Aggregate Supply Shocks Cause the Price Level and Real GDP

question 94

Multiple Choice

Aggregate supply shocks cause the price level and real GDP to change in

• A)the same direction with price changing by more than output.
• B)the same direction and by the same amount.
• C)opposite directions with price changing by less than output.
• D)opposite directions but not necessarily by the same amount.
• E)opposite directions but by the same amount.

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Definitions:

Homogeneous Mixture

A mixture in which the composition is uniform throughout, such as solutions where the solute is completely dissolved in the solvent.

Sugar

A generic name for sweet-tasting, soluble carbohydrates, many of which are used in food.

Chromatography

A laboratory technique for the separation of a mixture by passing it through a medium in which the components move at different rates.

Evaporation

The process by which a liquid changes into a gas, typically below its boiling point, at the surface of the liquid.