Suppose the U

question 56

Multiple Choice

Suppose the U.S.economy is operating at potential output.A negative supply shock that is accommodated by an open market purchase by the Federal Reserve will cause ________ in real GDP in the long run and ________ in the aggregate price level in the long run,everything else held constant.

• A)no change; an increase
• B)no change; a decrease
• C)an increase; an increase
• D)a decrease; a decrease

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Definitions:

Oral Presentation

A spoken performance or speech delivered to an audience to convey information or arguments.

Anecdote

An anecdote is a short, personal story about a real incident or person, usually shared to illustrate a point or entertain.

Problem-cause-solution

A rhetorical structure that identifies a problem, analyzes the cause(s), and proposes one or more solutions.

Comparative Advantages

The ability of an entity to produce goods or services at a lower opportunity cost than others.