Multiple Choice
Faced with an adverse supply shock, what can policymakers increase, and how will prices and output be affected?
A) They can increase aggregate demand, which increases prices and output.
B) They can increase aggregate demand, which decreases prices and increases output.
C) They can increase aggregate supply, which increases prices and output.
D) They can increase aggregate supply, which decreases prices and increases output.
Correct Answer:
Verified
Correct Answer:
Verified
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