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Which of the Following Is True of a Beneficial Supply

Question 57

Multiple Choice

Which of the following is true of a beneficial supply shock?


A) It could lead to a lower price level.
B) If the economy were initially in equilibrium,such a shock would create a contractionary gap.
C) It will permanently decrease the economy's price level.
D) It will cause the aggregate demand curve to shift rightward.
E) It will cause the aggregate demand curve to shift leftward.

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