If Prices Are Inflexible, Then a Negative Demand Shock Will

question 160

Multiple Choice

If prices are inflexible, then a negative demand shock will lead to

• A)a short-run increase in real GDP.
• B)a short-run decrease in real GDP.
• C)a short-run decrease in prices.
• D)no change in real GDP in the short run.

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Definitions:

Allele

Alternate versions of a gene, which develop through mutation and exist at the same position on a chromosome.

Intervention Study

A research method involving the intentional action or treatment applied to study subjects to observe its effects, often used in medical and psychological studies.

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Serving a useful and positive purpose, often implying the building up or improvement of something.

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The connections and interactions individuals have with their contemporaries or individuals of similar age, often influencing social development and behavior.