We Would Expect a Negative Real Shock, Such as a Severe

Multiple Choice

We would expect a negative real shock, such as a severe countrywide drought, to result in:

A) a decrease in the inflation rate and an increase in the growth rate of output.
B) a decrease in the inflation rate and a decrease in the growth rate of output.
C) an increase in the inflation rate and an increase in the growth rate of output.
D) an increase in the inflation rate and a decrease in the growth rate of output.