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★ѕραndavir ★ѕραndavir
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6 years ago
Suppose that an adverse supply shock causes downward pressure on nominal wages and unemployment to increase. If the Fed increases the money supply to stimulate AD and restore output to its previous level (assuming no change in the labor supply) a(n)
A) one time increase in prices will result.
B) inflationary spiral will begin if the real GDP has been reduced.
C) increase in the real GDP will follow.
D) All of the above
Textbook 
Macroeconomics

Macroeconomics


Edition: 12th
Author:
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thecromthecrom
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#2
5 years ago
Honestly I hate questions like these, glad people like you exist!
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