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Figure: Negative Supply Shock 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.Taking the economy back to the LRAS curve would require: A) a monetary expansion of 21%. B) an inflation rate much greater than 16%. C) an inflation rate of 16%. D) an unemployment rate of -2%.
-(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.Taking the economy back to the LRAS curve would require:


A) a monetary expansion of 21%.
B) an inflation rate much greater than 16%.
C) an inflation rate of 16%.
D) an unemployment rate of -2%.

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