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The Figure Below Shows the Price Level,real GDP,and the Potential

Question 47

Multiple Choice

The figure below shows the price level,real GDP,and the potential output for an economy.According to those who favor a passive approach to policy,once the expansionary gap is eliminated,the economy will end up at:
The figure below shows the price level,real GDP,and the potential output for an economy.According to those who favor a passive approach to policy,once the expansionary gap is eliminated,the economy will end up at: A) point A. B) point B. C) point C. D) a point to the right of point A. E) a point below C.


A) point A.
B) point B.
C) point C.
D) a point to the right of point A.
E) a point below C.

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