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If There Is an Inflationary Gap, Nominal Wages _, and the _

Question 292

Multiple Choice

If there is an inflationary gap, nominal wages _____, and the _____ curve shifts _____ until the economy reaches long-run equilibrium.

A) fall; aggregate demand; left
B) rise; aggregate demand; right
C) fall; short-run aggregate supply; right
D) rise; short-run aggregate supply; left

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