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  3. Study Set
    Macroeconomics
  4. Exam
    Exam 18: Supply Side Policies
  5. Question
    When the Output Gap Is Large, Then the Aggregate Supply
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When the Output Gap Is Large, Then the Aggregate Supply

Question 2

Question 2

Multiple Choice

When the output gap is large, then the aggregate supply curve will tend to be close to


A) horizontal.
B) 45 degrees.
C) vertical.
D) full employment.

Correct Answer:

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