If a central bank wants to counter the change in the price level caused by an adverse supply shock, it could change the money supply to shift a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left

If a central bank wants to counter the change in the price level caused by an adverse supply shock, it could change the money supply to shift a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 4QP

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Question

If a central bank wants to counter the change in the price level caused by an adverse supply shock, it could change the money supply to shift

	a.	aggregate demand right.
	b.	aggregate demand left.
	c.	aggregate supply right.
	d.	aggregate supply left.

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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