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Figure: Negative Supply Shock (Figure: Negative Supply Shock) This

Question 66

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Figure: Negative Supply Shock Figure: Negative Supply Shock   (Figure: Negative Supply Shock)  This economy initially begins at Point A and a negative supply shock takes it to Point Y. If the Fed reacts by increasing money growth by 9 percent, this would take the economy to A)  PointX.  B)  PointV. C)  PointB. D)  PointA. (Figure: Negative Supply Shock) This economy initially begins at Point A and a negative supply shock takes it to Point Y. If the Fed reacts by increasing money growth by 9 percent, this would take the economy to


A) PointX.
B) PointV.
C) PointB.
D) PointA.

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