Multiple Choice
Which of the following is true?
A) Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
B) Inflation and unemployment rates can both decrease in the short run in response to reduced aggregate demand.
C) Inflation and unemployment rates can both decrease in the short run in response to negative supply shocks.
D) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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