The Aggravation of Inflation and Unemployment as a Result of a Supply

Multiple Choice

The aggravation of inflation and unemployment as a result of a supply shock

A) is unavoidable and is referred to as the direct effect of an adverse supply shock.
B) is called the indirect effect of an adverse supply shock.
C) is a subsequent result of following an accommodating policy.
D) can be avoided if expansionary fiscal policy is initiated when the shock occurs.