Negative demand shocks have a tendency to ________ real GDP relative to potential GDP and ________ the inflation rate.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Correct Answer:
Verified
Q13: Suppose the economy is in equilibrium with
Q14: Economists initially viewed the Phillips curve as
Q15: A decrease in the unemployment rate that
Q16: When the Phillips curve was viewed as
Q17: Once the Phillips curve has shifted down,the
Q19: Once economists take into consideration changes in
Q20: An increase in the unemployment rate that
Q21: Figure 11.2 Q22: Suppose the economy is in equilibrium with Q23: Figure 11.1
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