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Consider the AD/AS Model, and Suppose That the Economy Begins

Question 79

Multiple Choice

Consider the AD/AS model, and suppose that the economy begins at potential output. The effect of a positive AS shock on real GDP will be reversed in the long run with a shift in .


A) leftward; AS
B) leftward; AD
C) leftward; Y*
D) rightward; AD
E) rightward; AS

Correct Answer:

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