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    Exam 14: Aggregate Demand and Supply
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    If an Economy Is Operating at Short-Run Equilibrium Below the Full-Employment
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If an Economy Is Operating at Short-Run Equilibrium Below the Full-Employment

Question 42

Question 42

Multiple Choice

If an economy is operating at short-run equilibrium below the full-employment level of real GDP, the self-correction model result is that :


A) unemployment increases.
B) unemployment falls.
C) cyclical unemployment increases.
D) frictional and structural unemployment increase.

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