Question: 2. How do supply shocks differ from demand shocks regarding GDP and price levels? (A) Demand shocks cause prices and GDP to decrease sharply. (B)

2. How do supply shocks differ from demand shocks regarding GDP and price levels? (A) Demand shocks cause prices and GDP to decrease sharply. (B) Demand shocks affect prices and GDP in opposite directions. (C) Supply shocks only impact prices and not GDP. (D) Supply shocks move prices and GDP in opposite directions. (E) Supply shocks cause prices and GDP to drop severely.

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