Use the following to answer questions: Figure Real Shocks
-(Figure: Real Shocks) From Point X in the accompanying graph, a negative real shock could cause the economy to move to Point:

Question

Use the following to answer questions: Figure Real Shocks 
-(Figure: Real Shocks) From Point X in the accompanying graph, a negative real shock could cause the economy to move to Point:

Quizplus · Accepted Answer

A negative real shock would cause a decrease in output, pushing the economy down the vertical axis. This would result in a movement towards Point Y, which represents a lower output level than Point X. Points W and Z represent higher levels of output than Point X, so they are not possible choices. Point X itself cannot be reached through a movement caused by a real shock, as it is assumed to be the current level of output.

Use the Following to Answer Questions: Figure Real Shocks