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In the short-run, the impact of an adverse supply shock is to

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In the short-run, the impact of an adverse supply shock is to

In the short-run, the impact of an adverse supply shock is to
A) reduce real GDP and increase the inflation rate if the growth of nominal GDP remains the same.
B) reduce real GDP and leave the inflation rate unchanged if the growth of nominal GDP is reduced enough.
C) maintain the same level of real GDP and increase the inflation rate if the growth of nominal GDP is increase enough.
D) All of the above

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Macroeconomics

Edition: 12^th

Author: Gordon

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