Which Set of Changes Is Definitely Predicted to Lower Real

question 47

Multiple Choice

Which set of changes is definitely predicted to lower Real GDP in the short run?

• A) The money supply rises and labor productivity rises.
• B) The U.S.dollar depreciates and wage rates fall.
• C) The U.S.dollar appreciates and labor productivity rises.
• D) Foreign real national income falls and wage rates rise.
• E) none of the above

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Definitions:

Federal Government

A system of government where power is divided between a central (national) government and various regional governments.

Unemployment

A situation where individuals who are capable of working and are actively seeking work are unable to find employment.

Congressional Democrats

Members of the Democratic Party who serve in the United States Congress, consisting of the House of Representatives and the Senate.

Camp David Accords

A peace treaty between Israel and Egypt brokered by the United States in 1978.