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In cursory class discussions a few weeks ago, most of you agree that microeconomic factors, including supply disruptions caused by the COVID pandemic and the
In cursory class discussions a few weeks ago, most of you agree that microeconomic factors, including supply disruptions caused by the COVID pandemic and the war in Ukraine, are the major causes of the current inflationary pressures. In other words, current inflation is caused by shifts in the short-run aggregate supply. If the Federal Reserve implemented a monetary policy to mitigate the effects of this adverse supply shock ON INFLATION, the money supply would output _ _ unemployment_ and prices_ O a. decrease, decrease, increase, decrease b. decrease, increase, increase, decrease O c. increase, increase, increase, decrease O d. increase, increase, increase, increase
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