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Economics
MEDIUM
ENGLISH
Economics
Policy makers are said to “accommodate” an adverse supply shock if they ?
A
fail to respond to the adverse supply shock and allow the economy to adjust on its own.
Option A
B
respond to the adverse supply shock by decreasing aggregate demand which lower prices
Option B
C
respond to the adverse supply shock by decreasing short run aggregate supply
Option C
respond to the adverse supply shock by increasing aggregate demand, which further raises prices
Correct answer
Correct answer: D
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