If the economy experiences a negative supply shock, which of the following will be true?
A) Inflation will fall, and real GDP will fall. B) Inflation will rise, and real GDP will rise.
C) Inflation will fall, and real GDP will rise. D) Inflation will rise, and real GDP will fall.
D
Economics
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Any point inside the production possibility curve is:
a. efficient. b. nonfeasible. c. inefficient. d. optimal.
Economics
When inflation occurs, consumers
a. realize gains in their wealth. b. increase spending to catch up with higher prices. c. automatically shift the consumption line upward. d. suffer a decrease in real wealth.
Economics