Question
When the economy suffers a permanent negative supply shock and the central bank does not respond by changing the autonomous component of monetary policy, then
When the economy suffers a permanent negative supply shock and the central bank does not respond by changing the autonomous component of monetary policy, then
Group of answer choices
A) inflation will be higher.
B)output will be at its potential.
C)output will be unchanged.
D)inflation will be unchanged.
E)both A and B.
My initial thought is E. Thoughts?
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OPEC Twenty Years And Beyond
Authors: Ragaei El Mallakh
1st Edition
1317244737, 9781317244738
