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Shocks to Aggregate Demand ______ Require the Fed to Choose

Question 66

Multiple Choice

Shocks to aggregate demand ______ require the Fed to choose between inflation and output stability; shocks to aggregate supply ______ require the Fed to choose between inflation and output stability.


A) do; do
B) do; do not
C) may or may not; may or may not
D) do not; do

Correct Answer:

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