An adverse supply shock generally decreases the price level and the real GDP
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Which of the following will not cause the aggregate supply curve to fall?
a. Natural disasters. b. An increase in input prices. c. A reduction in the nation's level of productivity. d. A decrease in the nation's average price level (i.e., the implicit price index). e. None of these answers is correct.
A decrease in consumer confidence will cause a:
A. shift in aggregate demand to the right. B. movement downward along the aggregate demand curve. C. shift in aggregate demand to the left. D. movement upward along the aggregate demand curve.
What are the benefits and costs to Indian citizens of allowing Indian companies to copy and sell patent-protected drugs developed by U.S. companies?
Please provide the best answer for the statement.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline