If the 1979 oil price shock were to be accommodated to maintain employment, then the likely effect would have been
A) the incorporation of the energy-induced inflation into expectations that would be perpetuated.
B) a rate of growth of the money supply in excess of what would have otherwise been experienced.
C) the postponement of political pressure to fight inflation by more- restrictive fiscal and monetary policies.
D) all of the above.
E) none of the above.
Correct Answer:
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