Suppose an economy experiences a positive supply shock. What is the short-run effect on output and the price level? Group of answer choices Output rises and the price level falls. Output and the price level both rise. Output falls and the price level rises. Output and the price level both fall.
Suppose an economy experiences a positive supply shock. What is the short-run effect on output and the price level? Group of answer choices Output rises and the price level falls. Output and the price level both rise. Output falls and the price level rises. Output and the price level both fall.
Chapter14: Aggregate Demand And Supply
Section: Chapter Questions
Problem 6SQP
Related questions
Question
Suppose an economy experiences a positive supply shock. What is the short-run effect on output and the price level?
Group of answer choices
Output rises and the price level falls.
Output and the price level both rise.
Output falls and the price level rises.
Output and the price level both fall.
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