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    Exam 15: Modern Macroeconomics: From the Short Run to the Long Run
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    Suppose That Potential Output Is $6 Trillion and Real GDP
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Suppose That Potential Output Is $6 Trillion and Real GDP

Question 93

Question 93

Multiple Choice

Suppose that potential output is $6 trillion and real GDP is currently $5.5 trillion. In the long run, we would expect that:


A) wages and input prices will fall.
B) the price level will rise.
C) real GDP will fall.
D) all of the above

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