Multiple Choice
By itself,a supply shock,such as a hike in the price of oil,can
A) cause real GDP to permanently decrease year after year.
B) not result in persisting inflation.
C) be inflationary as long as there is no policy response.
D) result in persisting inflation if aggregate supply persistently increases.
E) result in a persisting wage-price spiral.
Correct Answer:
Verified
Correct Answer:
Verified
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