Question: Which statement is INCORRECT? All the statements are correct. An increase in potential output would allow macro-policy makers to set higher output and employment goals

Which statement is INCORRECT? All the statements are correct. An increase in potential output would allow macro-policy makers to set higher output and employment goals without risking an outburst of inflation. O A beneficial supply shock from a transitory fall in energy prices is unlikely to reduce the inflation rate over the long term. An adverse supply shock which increases core inflation can be ignored by macro-policy makers because it will lead to only a transitory increase in prices. A decrease in potential output would force macro-policy makers to set lower output and employment goals to avoid an increase in the inflation rate. Moving to the next question prevents changes to this answer. Question 6 3 in AUG 4 tv A Nc
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