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The Figure Shows Planned Aggregate Expenditure and Output for an Economy

Question 42

Multiple Choice

The figure shows planned aggregate expenditure and output for an economy. The figure shows planned aggregate expenditure and output for an economy. Suppose that the economy's output is Y<sub>2</sub>. This level of GDP would be considered: A) inflationary. B) recessionary. C) a long-run level of output. D) unsustainable over time. Suppose that the economy's output is Y2. This level of GDP would be considered:


A) inflationary.
B) recessionary.
C) a long-run level of output.
D) unsustainable over time.

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