5. Stagflation lower output and higher prices is caused by a. an expansion in aggregate...

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5. Stagflation — lower output and higher prices — is caused by

a. an expansion in aggregate demand.

b. a contraction in aggregate demand.

c. a favorable shock to aggregate supply.

d. an adverse shock to aggregate supply.

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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