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04-05-2024
Business

Answered

Suppose that the economy is hit by a negative demand shock (a shock that causes AD to shift left),
and the central bank chooses to do nothing in response. What will happen in the long - run?

A. Output will be lower.
B. Inflation will be lower.
C. Output will be higher.
D. Inflation will be higher.
E. Inflation will not change.

Answer :

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