A Central Bank Might Decide to "Validate" a Negative Supply

Multiple Choice

A central bank might decide to "validate" a negative supply shock because

A) there is no other way to return the economy to full employment.
B) the economy might suffer a long slump before wages and prices fall enough to restore full employment.
C) there is no process by which the economy will return to potential output.
D) it is an effective means of preventing inflation.
E) there are no negative effects from this policy action.