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    Principles of Macroeconomics Study Set 12
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    Exam 12: Policy Effects and Cost Shocks in the Asad Model
  5. Question
    In a Binding Situation, a Positive Cost Shock Will Cause
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In a Binding Situation, a Positive Cost Shock Will Cause

Question 179

Question 179

Multiple Choice

In a binding situation, a positive cost shock will cause ________ in output and ________ in the price level.


A) no change; no change
B) a decrease; an increase
C) no change; an increase
D) a decrease; no change

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