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What Will a Favourable Supply Shock Cause the Price Level

Question 179

Multiple Choice

What will a favourable supply shock cause the price level and output to do?


A) It will cause the price level and output to rise.
B) It will cause the price level and output to fall.
C) It will cause the price level to rise and output to fall.
D) It will cause the price level to fall and output to rise.

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