Question
1. Assume you observe the following pattern in the data: RGDP (Real Gross Domestic Product) is decreasing and the GDP Deflator is decreasing. What type
1. Assume you observe the following pattern in the data: RGDP (Real Gross Domestic Product) is decreasing and the GDP Deflator is decreasing. What type of shock could generate this pattern in the data?
a. Negative Aggregate Supply Shock
b. Positive Aggregate Supply Shock
c. Negative Aggregate Demand Shock
d. Positive Aggregate Demand Shock
2. Assume you observe the following pattern in the data: the growth rate of RGDP is negative and the rate of inflation is increasing. What type of shock could generate this pattern in the data?
a. Negative Aggregate Demand Shock
b. Positive Aggregate Supply Shock
c. Positive Aggregate Demand Shock
d. Negative Aggregate Supply Shock
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
