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    Principles of Macroeconomics
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    Exam 17: The Short-Run Tradeoff Between Inflation and Unemployment
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    What Will an Adverse Supply Shock Cause Output and Prices
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What Will an Adverse Supply Shock Cause Output and Prices

Question 6

Question 6

Multiple Choice

What will an adverse supply shock cause output and prices to do?


A) It will cause output and prices to rise.
B) It will cause output and prices to fall.
C) It will cause output to rise and prices to fall.
D) It will cause output to fall and prices to rise.

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