Classicals Argue That an Adverse Supply Shock Would

question 49

Multiple Choice

Classicals argue that an adverse supply shock would

• A)raise neither the natural rate of unemployment nor the actual rate of unemployment.
• B)raise the actual rate of unemployment, but not the natural rate of unemployment.
• C)raise the natural rate of unemployment, but not the actual rate of unemployment.
• D)raise both the natural rate of unemployment and the actual rate of unemployment.

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Definitions:

Activities

Activities are tasks, operations, or processes carried out by individuals or groups in the pursuit of their objectives or interests.