Aggregate Supply Shocks Cause the Price Level and Real GDP

question 94

Multiple Choice

Aggregate supply shocks cause the price level and real GDP to change in

• A)the same direction with price changing by more than output.
• B)the same direction and by the same amount.
• C)opposite directions with price changing by less than output.
• D)opposite directions but not necessarily by the same amount.
• E)opposite directions but by the same amount.

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Definitions:

First Trimester

The initial three months of pregnancy, a critical period for fetal development.

Life-Support System

Technology or equipment designed to maintain human life under critical conditions by providing necessary conditions or vital functions.

Embryo

An early stage in the development of a multicellular organism, following fertilization and before fetal stage in mammals.

Amnion

Prenatal life-support system that is a bag or envelope containing a clear fluid in which the developing embryo floats.