Starting from a long run equilibrium, without any policy intervention, the long run impact of a temporary adverse supply shock is that prices will return to the old level and output will be permanently lower. be permanently higher and output will be permanently lower. be permanently higher and output will be restored to its long run level. return to the old level and output will be restored to its long run level.

Starting from a long run equilibrium, without any policy intervention, the long run impact of a temporary adverse supply shock is that prices will return to the old level and output will be permanently lower. be permanently higher and output will be permanently lower. be permanently higher and output will be restored to its long run level. return to the old level and output will be restored to its long run level.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 6DQ

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