Policymakers can neutralize:
A) supply shocks, but only in the short run.
B) supply shocks, but only in the long run.
C) supply shocks in both the short run and the long run.
D) only demand shocks.

Question

Quizplus · Accepted Answer

Policymakers can typically only neutralize demand shocks effectively, as supply shocks often involve changes in production capacity or costs that are not easily addressed through policy measures.

Policymakers Can Neutralize