Which of the following mechanisms helps output to return to potential after a supply shock?
A) A change in the nominal wage
B) Changes in business decision making strategies
C) Changes in the capital stock
D) The rigidity of the price level
E) Changes in inventories.
Correct Answer:
Verified
Q125: Stagflation
A) is caused by a negative demand
Q126: A positive supply shock causes stagflation in
Q127: Q128: Q129: The 1990 U.S.recession was Q131: The 1990-91 recession was caused by a Q132: If the price level is increasing and Q133: Stagflation is the combination of Q134: Recovery from the 1990-91 recession occurred because Q135: In the short run,a negative supply shock
A) triggered by a
A) falling output
A)
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