ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Please highlight which of the choices is the right one, I believe it is d but would like some conformation. If you can please also explian why the other choices are wrong

Starting from a long run equilibrium, without any policy intervention, the long run impact of a
temporary adverse supply shock is that prices will
return to the old level and output will be permanently lower.
be permanently higher and output will be permanently lower.
be permanently higher and output will be restored to its long run level.
return to the old level and output will be restored to its long run level.
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Transcribed Image Text:Starting from a long run equilibrium, without any policy intervention, the long run impact of a temporary adverse supply shock is that prices will return to the old level and output will be permanently lower. be permanently higher and output will be permanently lower. be permanently higher and output will be restored to its long run level. return to the old level and output will be restored to its long run level.
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