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Retnec Retnec
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7 years ago
Suppose the economy suffers an adverse supply shock. If the Federal Reserve responds by increasing the money supply, the short-run result will be
A) lower unemployment and less inflation.
B) a lower equilibrium GDP coupled with higher prices.
C) lower unemployment but higher prices.
D) lower prices but higher unemployment.
E) greater unemployment and higher inflation.
Textbook 
Introduction to Economic Reasoning

Introduction to Economic Reasoning


Edition: 8th
Author:
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hecosmetichecosmetic
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#1
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7 years ago
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Retnec Author
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7 years ago
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GeorgeNeist
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