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Classicals Argue That an Adverse Supply Shock Would

Question 36

Multiple Choice

Classicals argue that an adverse supply shock would


A) raise neither the natural rate of unemployment nor the actual rate of unemployment.
B) raise the actual rate of unemployment, but not the natural rate of unemployment.
C) raise the natural rate of unemployment, but not the actual rate of unemployment.
D) raise both the natural rate of unemployment and the actual rate of unemployment.

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