Equilibrium Real GDP Rises After the Dollar Strengthened

question 5

Multiple Choice

Equilibrium real GDP rises after the dollar strengthened. From this, we can conclude that

• A) the increase in aggregate demand was greater than the decrease in aggregate supply.
• B) the decrease in aggregate demand was less than the increase in aggregate supply.
• C) the decrease in aggregate demand was more than the increase in aggregate supply.
• D) the increase in aggregate demand was less than the decrease in aggregate supply.

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Definitions:

Full-Line Discount

A retail strategy where a store offers a wide variety of products from different categories at discounted prices.

Category Killers

Specialty discount stores that are able to gain high market share within their chosen category.

Market Share

The portion of a market controlled by a particular company, product, or brand, often expressed as a percentage of total sales.

Leased Department

A section within a retail store that is rented to an outside party.