A Significant Real Shock in an Economy Can Result In

question 228

Multiple Choice

A significant real shock in an economy can result in:

• A) a leftward shift of the LRAS curve.
• B) a leftward shift of the SRAS curve.
• C) consumer pessimism and a leftward shift of the AD curve.
• D) a leftward shift of the LRAS,SRAS,and AD curves.

---

Definitions:

Strip Bond

A financial security that represents a portion of the interest or principal of a bond, which has been separated to be sold individually.

Compounded Semiannually

This refers to the process of calculating interest on both the initial principal and the accrued interest from previous periods, done twice a year.

Maturity Date

The specified date on a financial instrument at which the principal (and usually the final interest payment) is due to be paid.

Face Value

The nominal value printed on a financial instrument like a bond or stock certificate, differing from its market value.