Which of the following would cause the price level to rise and output to fall in the short run? a. an increase in the money supply b. a decrease in the money supply c. an adverse supply shock d. a favorable supply shock
Which of the following would cause the price level to rise and output to fall in the short run? a. an increase in the money supply b. a decrease in the money supply c. an adverse supply shock d. a favorable supply shock
Chapter10: Bringing In The Supply Side: Unemployment And Inflation?
Section: Chapter Questions
Problem 1DQ
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Which of the following would cause the price level to rise and output to fall in the short run?
a. an increase in the money supply
b. a decrease in the money supply
c. an adverse supply shock
d. a favorable supply shock
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