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An Economy Has Experienced a Rightward Shift of Its Long-Run

Question 125

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An economy has experienced a rightward shift of its long-run aggregate supply curve and is now producing on that new long-run aggregate supply curve.It is reasonable to expect that


A) the cyclical unemployment rate has fallen.
B) the cyclical unemployment rate has been unaffected.
C) the inflation rate has risen.
D) the price level has risen.
E) productivity has fallen.

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