What is the main difference between a temporary and permanently negative supply shock?
A)The real interest rate immediately decreases after a temporary shock while it eventually increases after a permanent shock.
B)Output increases right away after a temporary shock but the impact does not last whereas for a permanent shock output permanently decreases.
C)A temporary shock will see a permanent increase in inflation while inflation will only rise temporarily after a permanent shock.
D)all of the above
E)none of the above

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The Answer of What is the main difference between a temporary and permanently negative supply shock?
A)The real interest rate immediately decreases after a temporary shock while it eventually increases after a permanent shock.
B)Output increases right away after a temporary shock but the impact does not last whereas for a permanent shock output permanently decreases.
C)A temporary shock will see a permanent increase in inflation while inflation will only rise temporarily after a permanent shock.
D)all of the above
E)none of the above

What Is the Main Difference Between a Temporary and Permanently