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Beginning from a Position of Long-Run Equilibrium at the Full-Employment

Question 21

Multiple Choice

Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to a decrease in the aggregate demand curve would be a:


A) movement upward along the short-run aggregate supply curve.
B) movement upward along the long-run aggregate supply curve.
C) downward shift in the short-run aggregate supply curve.
D) movement downward along the short-run aggregate supply curve.

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