4. If the central bank responds aggressively to the output gap, a supply shock will have a....
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4. If the central bank responds aggressively to the output gap, a supply shock will have
a. a larger impact on inflation but a smaller impact on output.
b. a smaller impact on inflation but a larger impact on output.
c. a larger impact on both inflation and output.
d. a smaller impact on both inflation and output.
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