What Effect Will a Negative Supply Shock Have on the Main

question 166

Multiple Choice

What effect will a negative supply shock have on the main measures of economic performance?

• A)Real GDP will increase, inflation will increase, and unemployment will decrease.
• B)Real GDP will decrease, inflation will decrease, and unemployment will increase.
• C)Real GDP will decrease, inflation will increase, and unemployment will increase.
• D)Real GDP will increase, inflation will decrease, and unemployment will decrease.

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Definitions:

Greater Mobility

The increased capacity or ease of movement, often related to advancements in transport, technology, or social mobility.

Nuclear Family

A fundamental social unit consisting of a parent or parents and their children, considered a central building block of larger societal structures.

Extended Family

Two or more closely related nuclear families clustered together in a large domestic group.

Harijan

A term popularized by Mahatma Gandhi for describing individuals traditionally considered to be of lower caste in India, meaning "children of God".