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Which of the following is NOT correct? Select one: a. A temporary supply shock affects output and inflation only in the short run and has
Which of the following is NOT correct? Select one: a. A temporary supply shock affects output and inflation only in the short run and has no effect in the long run b. Even without the monetary policy, the economy will go back to its initial equilibrium after a transitory aggregate demand shock c. The rationale that central bank adopts monetary policies to affect the economy is that monetary policy can always help increase the long-run output level d. A permanent positive aggregate demand shock can increase both the short-run and long-run output
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