All other things equal, most economists agree that in the event of a supply shock, the preferable policy is to fight the recession rather than the inflation.

Question

Quizplus · Accepted Answer

A supply shock is an event that reduces the supply of goods and services, leading to higher prices and lower output. In this case, fighting the recession is preferable to fighting the inflation because it will help to restore output and employment.

All Other Things Equal, Most Economists Agree That in the Event