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    Macroeconomics Study Set 48
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    Exam 16: Inflation, Disinflation, and Deflation
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    Suppose That a Fall in Commodity Prices Causes a Supply
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Suppose That a Fall in Commodity Prices Causes a Supply

Question 97

Question 97

Multiple Choice

Suppose that a fall in commodity prices causes a supply shock. The short-run Phillips curve will:


A) shift down.
B) show a movement along the same curve.
C) not be affected at all.
D) shift up.

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