What Impact Will a Negative Demand Shock Have on the Main

question 67

Multiple Choice

What impact will a negative demand shock have on the main measures of economic performance?

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

---

Definitions:

Par Value

The face value or nominal value of a security as stated by the issuer, often used in reference to stocks and bonds.

Federal Agency

A government organization established to perform a specific function or range of functions at the national level.

Major Stock Exchanges

Platforms where stocks and other securities are bought and sold, including the New York Stock Exchange and Nasdaq.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders.