Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 19

For each of the following scenarios, say whether the shock was a demand-side shock, a supplyside shock, or a combination of both shocks.
a. The price level and GDP both fell. GDP then increased, but the price level fell even further.
b. In the long run, the economy had the same level of output but a higher price level.
c. In the short run, the price level increased, but GDP fell.
d. In the long run, GDP increased, and the price level fell.
e. In the long run, GDP increased, and the price level was constant.