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Isolated Negative Aggregate Supply Shocks,in the Absence of Monetary Validation,will

Question 86

Multiple Choice

Isolated negative aggregate supply shocks,in the absence of monetary validation,will


A) eventually be self-correcting as wages slowly fall.
B) never be self-correcting without government policy to expand the money supply.
C) be self-correcting only if the aggregate demand curve shifts.
D) result in a permanent output gap.
E) have no short-run or long-run effects.

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