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The Intersection of the Inflation Adjustment Line and the Aggregate

Question 28

Multiple Choice

The intersection of the inflation adjustment line and the aggregate demand curve determines the level of


A) real GDP and inflation in the long run.
B) real GDP and inflation in the short run.
C) potential GDP and inflation at any given time.
D) potential GDP and the price level at any given time.
E) real GDP and inflation at any given time.

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