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    A beneficial supply shock

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    Consider the attached aggregate model. Which of the following could cause equilibrium to move from point a to point b?

    1. A temporary reduction in aggregate supply

    2. An adverse supply shock

    3. A beneficial supply shock

    4. A gradual decrease in resources

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    3. A beneficial supply shock.

    When the economy moves from point A to point B real GDP goes up and the ...

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    A beneficial supply shock is integrated in this solution.