A Negative Real Shock Causes the Economy's

question 204

Multiple Choice

A negative real shock causes the economy's:

• A) AD and SRAS curves to shift inward.
• B) AD and LRAS curves to shift inward.
• C) SRAS and LRAS curves to shift inward.
• D) AD curve only to shift inward.

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Definitions:

Trading Posts

Established locations where trade takes place, historically used for the exchange of goods between traders or between traders and local populations.

African Slavery

The enforced servitude of African people transported to the Americas and other parts of the world from the 16th to the 19th century.

Chesapeake Area

A region surrounding the Chesapeake Bay in the United States, known for its unique cultural history, seafood industry, and environmental significance.

Indentured Servants

Individuals who agreed to work for a specified number of years in exchange for passage to a new country, often during the 17th and 18th centuries.