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

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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