Suppose that the economy is at the natural rate of output.In the absence of accommodating policy and everything else held constant,the net result of a negative supply shock is that
A) the economy returns to full employment at the initial price level.
B) the economy returns to full employment at a higher price level.
C) the economy returns to full employment at a lower price level.
D) aggregate output increases above the natural rate level,but only temporarily.
Correct Answer:
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