Supply shocks that are counteracted by increasing the money supply will restore the economy to full employment and also decrease the price level.

Name: Supply shocks that are counteracted by increasing the money supply will restore the economy to full employment and also decrease the price level.
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Increasing the money supply in response to a supply shock may bring the economy back to full employment, but it will also increase aggregate demand and potentially raise the price level, leading to inflation.

Supply Shocks That Are Counteracted by Increasing the Money Supply