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According to a Neoclassical economist, what should be the optimal policy response to a negative demand shock? Group of answer choices No policy response is
According to a Neoclassical economist, what should be the optimal policy response to a negative demand shock? Group of answer choices No policy response is needed since there will be no impact on output. Treasury should lower the interest rate to stimulate aggregate demand The government should lower wages to accommodate the adjustment of the AS curve The central bank should use OMO to increase the money supply
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