Multiple Choice
Use the following to answer questions
Figure: Negative Supply Shock
-(Figure: Negative Supply Shock) Refer to the figure.This economy initially begins at point A and a negative supply shock takes it to point Y.If the Fed reacts by increasing money growth by 9%,this would take the economy to:
A) point A.
B) point B.
C) point X.
D) point V.
Correct Answer:

Verified
Correct Answer:
Verified
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