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When the Economy Suffers a Temporary Negative Supply Shock and the Monetary

Question 33

Multiple Choice

When the economy suffers a temporary negative supply shock and the monetary policy makers try to stabilize economic activity in the short run,then


A) aggregate demand curve shifts rightward.
B) output will be at its potential.
C) inflation rate will be higher.
D) all of the above.
E) both A and B.

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