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The Figure Below Shows the Short-Run Aggregate Demand and Supply

Question 82

Multiple Choice

The figure below shows the short-run aggregate demand and supply curves of an economy. If the economy is currently producing at Y2, long-run equilibrium will most likely be established by a(n) :
The figure below shows the short-run aggregate demand and supply curves of an economy. If the economy is currently producing at Y<sub>2</sub>, long-run equilibrium will most likely be established by a(n) :   A)  increase in short-run aggregate supply. B)  decrease in short-run aggregate supply. C)  decrease in potential output. D)  increase in potential output. E)  rightward shift of the aggregate demand curve.


A) increase in short-run aggregate supply.
B) decrease in short-run aggregate supply.
C) decrease in potential output.
D) increase in potential output.
E) rightward shift of the aggregate demand curve.

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