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If There Is an Adverse Supply Shock, Which of the Following

Question 29

Multiple Choice

If there is an adverse supply shock, which of the following will most likely happen?


A) The aggregate supply curve and the short-run Phillips curve will both shift right.
B) The aggregate supply curve and the short-run Phillips curve will both shift left.
C) The aggregate supply curve will shift right, and the short-run Phillips curve will shift left.
D) The aggregate supply curve will shift left, and the short-run Phillips curve will shift right.

Correct Answer:

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