Unlike the Suez Canal, the Panama Canal is highly relevant for the US economy. A blockage of the Panama Canal could produce severe supply disruptions for the US economy. Suppose there is a severe blockage of the Panama Canal that last for six weeks. The following questions consider how such a blockage of the Panama Canal would affect the US economy in the short-run. Which of the following statements describes how a blockage of the Panama Canal would affect the US economy in the short run?        A) The price level would increases and real GDP would rise above its natural level.       B) The price level would decrease and real GDP would rise above its natural level.       C) The price level would decrease and real GDP would fall below its natural level.       D) The price level would increase and real GDP would fall below its natural level

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Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: