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If GDP Is Above Potential Output, Then We Expect to See

Question 145

Multiple Choice

If GDP is above potential output, then we expect to see


A) increasing wages, causing the short-run aggregate supply curve to shift up.
B) increasing wages, causing the short-run aggregate supply curve to shift down.
C) falling wages, causing the short-run aggregate supply curve to shift up.
D) falling wages, causing the short-run aggregate supply curve to shift down.

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