Accommodating a negative supply shock with monetary policy to accelerate the economy causes rapid inflation.

Name: Accommodating a negative supply shock with monetary policy to accelerate the economy causes rapid inflation.
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A negative supply shock results in higher prices for goods and services. If monetary policy is used to stimulate the economy in response to this shock, it can lead to an increase in the money supply and aggregate demand, which further drives up prices, resulting in inflation.

Accommodating a Negative Supply Shock with Monetary Policy to Accelerate