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Suppose the U

Question 88

Multiple Choice

Suppose the U.S. economy is operating at potential output. A negative supply shock that is accommodated by an open market purchase by the Federal Reserve will cause ________ in real GDP in the long run and ________ in inflation in the long run,everything else held constant.


A) no change;an increase
B) no change;a decrease
C) an increase;an increase
D) a decrease;a decrease

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