Exhibit 10-7 -In the Short Run,real and Nominal GDP Will Both Decrease

question 152

Multiple Choice

Exhibit 10-7
-In the short run,real and nominal GDP will both decrease whenever

• A)aggregate demand decreases,but not always when aggregate supply decreases
• B)aggregate supply decreases,but not always when aggregate demand decreases
• C)either aggregate demand or supply decreases
• D)aggregate supply decreases
• E)aggregate supply decreases along a constant aggregate demand curve

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Definitions:

Divergent Thinking

A mental approach or technique for producing innovative ideas through the examination of numerous potential answers.

Convergent

Thinking that involves bringing several pieces of information together to solve a problem or come to a single, correct answer.

Heuristic

A problem-solving approach that employs a practical method or various shortcuts to produce solutions that may not be perfect but are sufficient for the immediate goals.

Decisive

Having the power or quality of settling an issue or producing a definite result.