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    Exam 25: Using the Economic Fluctuations Model
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    If Real GDP Stays Below Potential GDP
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If Real GDP Stays Below Potential GDP

Question 39

Question 39

Multiple Choice

If real GDP stays below potential GDP,


A) the AD curve will begin to shift to the left.
B) the IA line will shift down.
C) potential GDP will decline.
D) the IA line will shift up.
E) the AD curve will begin to shift to the right.

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