If the economy experiences a negative supply shock,which of the following will be true?

Name: If the economy experiences a negative supply shock,which of the following will be true?
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Question

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A negative supply shock means that the economy's ability to produce goods and services has decreased, causing an increase in production costs. This, in turn, leads to a decrease in the aggregate supply (AS) curve. The decrease in AS leads to higher prices (inflation) and lower real GDP as the economy is producing less.

If the Economy Experiences a Negative Supply Shock,which of the Following