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:

Net Investment Income

The profit gained from investment activities after subtracting all related expenses, such as fees and taxes.

Assets Abroad

Financial holdings or investments located in foreign countries, outside of an investor's home country.

Current Account Deficit

A measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports.

Capital Account

A national account that records transactions involving the purchase and sale of assets, including real estate, stocks, bonds, and businesses, between residents and non-residents.