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    Economics Principles and Policy Study Set 2
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    Exam 26: Bringing in the Supply Side: Unemployment and Inflation
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    The Existence of an Inflationary Gap Should Cause
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The Existence of an Inflationary Gap Should Cause

Question 75

Question 75

Multiple Choice

The existence of an inflationary gap should cause


A) wages to fall.
B) prices to fall.
C) unemployment to rise.
D) net exports to rise.

Correct Answer:

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