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Mankiw's version of the aggregate demand and supply model assumes that a positive supply shock, such as the decline in oil prices, would lead to
Mankiw's version of the aggregate demand and supply model assumes that a positive supply shock, such as the decline in oil prices, would lead to
A.an increase in the natural level of output but no change in the price level in the long run.
B.no change in the natural level of output and no change in the pricelevel in the long run.
C.no change in the natural level of output but a lower pricelevel in the long run.
D.an increase in the natural level of output and lower a lower price level in the long run.
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