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Unformatted text preview: real GDP falls. The fall in output means that unemployment rises. By contrast, a beneficial supply shock causes supply to go up. This would be what would happen if a new invention caused the price of producing a product to go down suddenly. This would increase supply and the sale price of the good would decrease. Macro 2 ECON, Student edition pages 164-166, by William A. McEachern...
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- Spring '11