Which of the Following Would Be Considered a Negative Real

question 40

Multiple Choice

Which of the following would be considered a negative real supply shock?

• A)an increase in expected inflation
• B)a disruption of financial markets
• C)a decrease in government spending
• D)a decrease in guaranteed pension benefits

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Definitions:

No Child Left Behind Act

A U.S. federal law enacted in 2002 aimed at improving the performance of U.S. primary and secondary schools by increasing standards of accountability for states, school districts, and schools, as well as providing parents more flexibility in choosing which schools their children will attend.

Federal Mandate

Regulations that the federal government imposes on state and local governments to carry out certain policies.

Federal Expenditures

The spending by the federal government of a country, including on defense, education, public welfare, and infrastructure projects.

Average Tax Rate

The portion of total income paid in taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.