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6. A positive supply shock causes A) falling average prices. B) decreased real GDP. C) increased...

6. A positive supply shock causes A) falling average prices. B) decreased real GDP. C) increased unemployment. D) stagflation. E) none of the above.

7. An increasing price level and increased unemployment rate most likely come from A) rising input prices. B) higher income taxes. C) lower interest rates. D) increases in the value of the Canadian dollar. E) improvements in technology.

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