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:

Post-traumatic Stress Disorder

A disorder related to mental health, sparked by involvement in or witnessing of an event causing extreme fear, defined by involuntary recollection, terrifying nightmares, and deep anxiety.

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Positive Symptoms

Those symptoms of schizophrenia that indicate the presence of inappropriate behavior, such as hallucinations, delusions, agitation, and inappropriate giggling.

Negative Symptoms

Those symptoms of schizophrenia that reflect the absence of appropriate behavior, such as blank faces, monotonic voices, and motionless bodies.