Suppose We Observe the Price Level Increasing and Real GDP

question 70

Multiple Choice

Suppose we observe the price level increasing and real GDP decreasing. An explanation for this is that

• A) the dollar weakened and the effect on aggregate supply was less than the effect on aggregate demand.
• B) the dollar weakened and the effect on aggregate supply was greater than the effect on aggregate demand.
• C) the dollar strengthened and the effect on aggregate supply was less than the effect on aggregate demand.
• D) the dollar strengthened and the effect on aggregate supply was greater than the effect on aggregate demand.

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Definitions:

Speech Sounds

Speech sounds are the auditory signals or phonemes that are produced by the human vocal apparatus to form the building blocks of spoken language.

Discriminate

The act of recognizing or noting the difference between things; often used in context where unfair treatment is based on differences like race, gender, age, etc.

Synaptic Pruning

The process by which extra neurons and synaptic connections are eliminated in the brain to increase the efficiency of neuronal transmissions.