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In the Short-Run,the Impact of an Adverse Supply Shock Is

Question 108

Multiple Choice

In the short-run,the impact of an adverse supply shock is to


A) reduce real GDP and leave the inflation rate unchanged if the growth of nominal GDP remains the same.
B) reduce real GDP and leave the inflation rate unchanged if the growth of nominal GDP is reduced enough.
C) maintain the same level of real GDP and reduce the inflation rate if the growth of nominal GDP is increase enough.
D) All of the above

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