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Suppose the U

Question 56

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 the aggregate price level 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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