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In Real Business Cycle Models,an Unfavorable Supply Shock

Question 23

Multiple Choice

In real business cycle models,an unfavorable supply shock


A) leads to an increase in the price level and a decline in real GDP.
B) causes the aggregate demand curve to shift to the left.
C) increases total output.
D) increases aggregate demand because price levels rise.
E) leads to significant decreases in long-term involuntary unemployment.

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