Question: Aggregate Demand and Aggregate Supply - End of Chapter Problem 6. Suppose that the economy is currently at potential output. Also suppose that you are

Aggregate Demand and Aggregate Supply - End of Chapter Problem 6. Suppose that the economy is currently at potential output. Also suppose that you are an economic policy maker, and that a college economics student asks you to rank, if possible, your most preferred to least preferred type of shock: positive demand shock, negative demand shock, positive supply shock, negative supply shock. How would you rank them? Most preferred Positive demand shock Negative demand shock Positive supply shock Negative supply shock Least preferred Answer Bank Aggregate Demand and Aggregate Supply - End of Chapter Problem 6. Suppose that the economy is currently at potential output. Also suppose that you are an economic policy maker, and that a college economics student asks you to rank, if possible, your most preferred to least preferred type of shock: positive demand shock, negative demand shock, positive supply shock, negative supply shock. How would you rank them? Most preferred Positive demand shock Negative demand shock Positive supply shock Negative supply shock Least preferred Answer Bank
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