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How Will a Favourable Supply Shock Shift Short-Run Aggregate Supply

Question 128

Multiple Choice

How will a favourable supply shock shift short-run aggregate supply, and how will output change?


A) It will shift short-run aggregate supply left, making output rise.
B) It will shift short-run aggregate supply left, making output fall.
C) It will shift short-run aggregate supply right, making output rise.
D) It will shift short-run aggregate supply right, making output fall.

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