Confronted with an adverse supply shock,an economy with rigid wages and prices would suffer
A)an increase in output and inflation.
B)a decrease in output and increase in inflation.
C)an increase in output and decrease in inflation.
D)a decrease in output only.

Question

Quizplus · Accepted Answer

The Answer of Confronted with an adverse supply shock,an economy with rigid wages and prices would suffer
A)an increase in output and inflation.
B)a decrease in output and increase in inflation.
C)an increase in output and decrease in inflation.
D)a decrease in output only.

Confronted with an Adverse Supply Shock,an Economy with Rigid Wages