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Once Decision Makers Fully Adjust to an Increase in the General

Question 43

Multiple Choice

Once decision makers fully adjust to an increase in the general price level,


A) the actual rate of unemployment will exceed the natural rate of unemployment.
B) the actual rate of unemployment will be less than the natural rate of unemployment.
C) the rate of output will exceed the economy's long-run capacity.
D) output will return to the full-employment level.

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