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If Prices of Goods and Services Are Free to Quickly

Question 123

Multiple Choice

If prices of goods and services are free to quickly adjust, then:


A) A negative demand shock would lead to increased unemployment in the short run
B) A positive demand shock would lead to increased unemployment in the short run
C) A negative demand shock would have no short-run effect on unemployment
D) There would be no short-run demand shocks

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