Consider an economy that is initially in its​ long-run equilibrium. Suppose this economy suffers a temporary negative su

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Consider an economy that is initially in its​ long-run equilibrium. Suppose this economy suffers a temporary negative supply shock. If the central​ bank’s sole objective is to stabilize output in the​ short-run, then what will happen after the central bank has responded according to its​ objective?
A.Inflation will be​ higher, output will back at its original levelB.Inflation will be​ lower, output will be lowerC.Inflation will be​ higher, output will be higherD.Inflation will be​ higher, output will be lowerE.Inflation will be​ lower, output will back at its original level F.Inflation will be​ lower, output will be higher
A.Inflation will be​ higher, output will back at its original level
A.
Inflation will be​ higher, output will back at its original level
Inflation will be​ higher, output will back at its original level
B.Inflation will be​ lower, output will be lower
B.
Inflation will be​ lower, output will be lower
Inflation will be​ lower, output will be lower
C.Inflation will be​ higher, output will be higher
C.
Inflation will be​ higher, output will be higher
Inflation will be​ higher, output will be higher
D.Inflation will be​ higher, output will be lower
D.
Inflation will be​ higher, output will be lower
Inflation will be​ higher, output will be lower
E.Inflation will be​ lower, output will back at its original level
E.
Inflation will be​ lower, output will back at its original level
Inflation will be​ lower, output will back at its original level
F.Inflation will be​ lower, output will be higher
F.
Inflation will be​ lower, output will be higher
Inflation will be​ lower, output will be higher
Consider an economy that is initially in its​ long-run equilibrium. Suppose this economy suffers a temporary negative supply shock. If the central​ bank’s sole objective is to stabilize output in the​ short-run, then what will happen after the central bank has responded according to its​ objective?A.Inflation will be​ higher, output will back at its original levelB.Inflation will be​ lower, output will be lowerC.Inflation will be​ higher, output will be higherD.Inflation will be​ higher, output will be lowerE.Inflation will be​ lower, output will back at its original level F.Inflation will be​ lower, output will be higher
Consider an economy that is initially in its​ long-run equilibrium. Suppose this economy suffers a temporary negative supply shock. If the central​ bank’s sole objective is to stabilize output in the​ short-run, then what will happen after the central bank has responded according to its​ objective?
Consider an economy that is initially in its​ long-run equilibrium. Suppose this economy suffers a temporary negative supply shock. If the central​ bank’s sole objective is to stabilize output in the​ short-run, then what will happen after the central bank has responded according to its​ objective?
A.Inflation will be​ higher, output will back at its original levelB.Inflation will be​ lower, output will be lowerC.Inflation will be​ higher, output will be higherD.Inflation will be​ higher, output will be lowerE.Inflation will be​ lower, output will back at its original level F.Inflation will be​ lower, output will be higher
A.Inflation will be​ higher, output will back at its original level
A.
Inflation will be​ higher, output will back at its original level
Inflation will be​ higher, output will back at its original level
B.Inflation will be​ lower, output will be lower
B.
Inflation will be​ lower, output will be lower
Inflation will be​ lower, output will be lower
C.Inflation will be​ higher, output will be higher
C.
Inflation will be​ higher, output will be higher
Inflation will be​ higher, output will be higher
D.Inflation will be​ higher, output will be lower
D.
Inflation will be​ higher, output will be lower
Inflation will be​ higher, output will be lower
E.Inflation will be​ lower, output will back at its original level
E.
Inflation will be​ lower, output will back at its original level
Inflation will be​ lower, output will back at its original level
F.Inflation will be​ lower, output will be higher
F.
Inflation will be​ lower, output will be higher
Inflation will be​ lower, output will be higher