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    Macroeconomics Study Set 9
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    Exam 11: The Is-Mp Model: Adding Inflation and the Open Economy
  5. Question
    Positive Supply Shocks Can Have a Tendency to ________ Costs
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Positive Supply Shocks Can Have a Tendency to ________ Costs

Question 39

Question 39

Multiple Choice

Positive supply shocks can have a tendency to ________ costs of production and ________ the inflation rate.


A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

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