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In the dynamic version of aggregate demand and short-run aggregate supply, the effect of a supply shock on the inflation gap ( ) will be:
In the dynamic version of aggregate demand and short-run aggregate supply, the effect of a supply shock on the inflation gap ( ) will be: a. Smaller the faster is the speed of adjustment b. Larger the faster is the speed of adjustment c. Smaller the slower is the speed of adjustment d. The same as a supply shock
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Economics
Authors: Paul A. Samuelson, William Nordhaus
19th edition
978-0073511290, 73511293, 978-0073344232, 73344230, 978-007351129
