During the 1970s, Real Shocks to the U

question 36

Multiple Choice

During the 1970s, real shocks to the U.S.economy caused:

• A)an increase in both aggregate demand and aggregate supply.
• B)an increase in both the price level and the unemployment rate.
• C)a leftward shift of the Phillips curve.
• D)a decline in inflation but higher unemployment.
• E)a decline in both the price level and the unemployment rate.

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Definitions:

Dividing

refers to the mathematical operation of partitioning a quantity into equal parts or groups.

Long-Term Trend

The persistent movement in data or a market's price, productivity, or other economic indicators over an extended period.

Unemployment

The situation in which individuals capable of working and actively seeking employment remain jobless.

Downward Trend

A sustained decrease in a particular economic indicator, such as stock prices, GDP, or employment levels, over a period time.