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Which of the following could lead to moderate inflation? 1.) a negative supply shock 2.) a drop in consumer confidence 3.) a pursuit of a balanced budget during an expansion 4.) a contractionary fiscal
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Which of the following could lead to moderate inflation?

1.) a negative supply shock
2.) a drop in consumer confidence
3.) a pursuit of a balanced budget during an expansion
4.) a contractionary fiscal policy

User Rasshme
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1 Answer

5 votes
The answer is 1.) a negative supply shock
User Pesch
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