By itself, a supply shock such as a hike in the price of oil, can
A)cause real GDP to permanently decrease year after year.
B)cause a wage- price spiral.
C)not cause inflation.
D)be inflationary as long as there is no policy response.

Question

Quizplus · Accepted Answer

The Answer of By itself, a supply shock such as a hike in the price of oil, can
A)cause real GDP to permanently decrease year after year.
B)cause a wage- price spiral.
C)not cause inflation.
D)be inflationary as long as there is no policy response.

By Itself, a Supply Shock Such as a Hike in the Price