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An Accommodative Policy Response to a Positive Price Shock Would

Question 60

Multiple Choice

An accommodative policy response to a positive price shock would be attempted if it were determined that


A) price stability is more critical to maintain than output stability.
B) output stability is more critical to maintain than price stability.
C) price and output stability are equally critical to maintain.
D) the supply side and not the demand side of the goods and services market is the source of the shock.
E) none of the above.

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