FIGURE 29-2 Refer to Figure 29-2.The movement of the economy from E0 to E1 was likely caused by a
A) positive demand shock associated with increased investment.
B) negative demand shock due to government cut-backs.
C) negative supply shock due to a rise in input prices.
D) positive supply shock induced by developments of new technology.
E) positive supply shock caused by lower nominal wages.
Correct Answer:
Verified
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