If Both Real GDP and the General Price Level Fell

question 38

Multiple Choice

If both Real GDP and the general price level fell following the September 11^th terrorist attack,

• A)the negative aggregate supply shock was smaller than the negative aggregate demand shock.
• B)the negative aggregate supply shock was larger than the negative aggregate demand shock.
• C)the aggregate supply shock was negative, but the aggregate demand shock must have been positive.
• D)both the aggregate supply shock and the aggregate demand shock must have been, ironically, positive.

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Definitions:

Striations

A series of lines, streaks, or stripes within a structure, often seen in muscle tissue or minerals.

Smooth Muscle

A type of muscle found in the walls of internal structures like the intestines, blood vessels, and uterus, characterized by its involuntary control and lack of visible striations.

Epithelial Tissue

Layers of cells that line or cover the surfaces, both inside and outside the body, serving protective, absorption, filtration, and sensation functions.

Cancerous

Cancerous refers to cells that are malignant and have the potential to invade tissue and spread to other parts of the body.