Which Set of Changes Is Definitely Predicted to Lower Real

question 84

Multiple Choice

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

• A) Interest rates rise and wage rates fall.
• B) Interest rates rise and there is a beneficial supply shock.
• C) Interest rates rise and labor productivity increases.
• D) Interest rates rise and individuals expect lower (future)incomes.
• E) c and d

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Definitions:

Conglomerate

A coarse-grained sedimentary rock composed of rounded fragments or clasts of pre-existing rocks cemented together.

Unconformity

A geological surface that represents a time gap in the rock record, often where older rocks are overlain by much younger rocks without intermediate layers.

Shale Layer

A fine-grained sedimentary rock composed of clay, quartz, and other minerals, typically found in layered formations.

Granites

An igneous rock, chiefly made up of quartz, feldspar, and mica, with a coarse texture, widely used for construction purposes.