A supply shock,such as the OPEC oil-price increases in the 1970s,
A)can lead to accelerating inflation,if an accommodation policy tries to maintain the pre-shock level of real GDP.
B)will cause lower real wages in long-run equilibrium.
C)will reduce the natural level of real GDP.
D)both B and C

Question

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The Answer of A supply shock,such as the OPEC oil-price increases in the 1970s,
A)can lead to accelerating inflation,if an accommodation policy tries to maintain the pre-shock level of real GDP.
B)will cause lower real wages in long-run equilibrium.
C)will reduce the natural level of real GDP.
D)both B and C

A Supply Shock,such as the OPEC Oil-Price Increases in the 1970s