Ceteris paribus, in the long run, a negative supply shock causes
A) the long-run aggregate supply curve to shift to the left.
B) the price level to rise initially, and then return to its lower level.
C) unemployment to fall below its short-run level.
D) equilibrium real GDP to fall.
Answer: B
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What will be an ideal response?
Keynesians are skeptical of the classical theory that recessions are periods of increased mismatch between workers and jobs because
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