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    Principles of Macroeconomics
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    Exam 7: Aggregate Demand and Aggregate Supply
  5. Question
    If an Economy Is Operating at Its Potential Output Level
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If an Economy Is Operating at Its Potential Output Level

Question 158

Question 158

True/False

If an economy is operating at its potential output level, a change in aggregate demand or short-run aggregate supply will induce an inflationary or a recessionary gap.

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