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

---

Definitions:

Outward

Often used in economics to refer to an expansion or increase, such as in outward economic growth, indicating increasing production, income, or development.

Iraq's Oil Refineries

Facilities in Iraq where crude oil is processed and refined into more useful petroleum products like gasoline and diesel.

Destroyed

Refers to something that has been severely damaged or ruined, often beyond repair or restoration.

Production Efficiency

A state in which goods and services are produced at the lowest possible cost while not wasting any resources.