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- We would expect a negative real
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Card 34 / 145: We would expect a negative real shock, such as a major countrywide drought, to result in
A)
an increase in the inflation rate and a decrease in the growth rate of output.
B)
a decrease in the inflation rate and an increase in the growth rate of output.
C)
an increase in the inflation rate and an increase in the growth rate of output.
D)
a decrease in the inflation rate and a decrease in the growth rate of output.
Answer:
A) an increase in the inflation rate and a decrease in the growth rate of output.
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