If the Economy Experiences a Negative Supply Shock,which of the Following

question 176

Multiple Choice

If the economy experiences a negative supply shock,which of the following will be true?

• A)Inflation will rise,and real GDP will fall.
• B)Inflation will rise,and real GDP will rise.
• C)Inflation will fall,and real GDP will fall.
• D)Inflation will fall,and real GDP will rise.

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Definitions:

Small Business Manager

A person responsible for directing the operations, managing the staff, and ensuring the profitability of a small business.

Actions

The steps or measures taken to achieve a particular goal, often planned and executed to effect change or produce a desired outcome.

Business

Commercial activity where goods or services are exchanged for one another or for money, with the main aim of earning profits.

Education Level

The highest degree or stage of formal learning or schooling that an individual has completed.