Identify the combination of changes in nominal GDP growth and supply shocks that could account for each
Question:
(a) Inflation and the output ratio both increase.
(b) Inflation increases and the output ratio decreases.
(c) Inflation is constant and the output ratio decreases.
(d) Inflation decreases and the output ratio is constant.
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a Inflation and the output ratio both increase if nominal GDP growth increas...View the full answer
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