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11. During a two-quarter period of the lockdown for the COVID pandemic, we observed a decrease in realGDP and approximately no change in the GDPdeflator
11. During a two-quarter period of the lockdown for the COVID pandemic, we observed a decrease in realGDP and approximately no change in the GDPdeflator (treat the percentage change as O as a good approximation). From this, we inferred evidence of decreases (leftward shifts) in both Aggregate Supply and Aggregate Demand. Focus on the decrease in Aggregate Demand. During this period the money supply increased. From this information, we infer that O there must have been a decrease in the velocity of money. O there must have been a mistake in calculating the change in realGDP O there must have been a decrease in net exports. O there must have been an increase in business investment demand, O there must have been an increase in net exports
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