Following a sharp increase in the price of energy, the overall price level is most likely to

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Following a sharp increase in the price of energy, the overall price level is most likely to rise in the short run:

A. and remain elevated indefinitely unless the central bank tightens.

B. but be unchanged in the long run unless the money supply is increased.

C. and continue to rise until all prices have increased by the same proportion.

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Economics For Investment Decision Makers

ISBN: 9781118111963

1st Edition

Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto

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