A Favorable Supply Shock Causes Output to

question 32

Multiple Choice

A favorable supply shock causes output to

• A)rise.To counter this a central bank would increase the money supply.
• B)rise.To counter this a central bank would decrease the money supply.
• C)fall.To counter this a central bank would increase the money supply.
• D)fall.To counter this a central bank would decrease the money supply.

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