The effects of a supply shock on employment can be moderated in the short-run by
A) an appropriate acceleration in nominal GDP growth.
B) an appropriate deceleration of nominal GDP growth.
C) price controls.
D) Both A and C would moderate the effects of a supply shock.
Correct Answer:
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Q120: Assume adaptive expectations.Compared to a simple one-period
Q121: An extinguishing policy response to a supply
Q122: A beneficial supply shock will shift the
Q123: Figure 8-6 Q124: If the SP curve is steep then Q126: In the short-run,the impact of an adverse Q127: If price controls are initiated,we would expect Q128: Assuming adaptive expectations,a "cold turkey" reduction in Q129: The effect of a supply shock on Q130: Figure 8-2
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