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After a Positive Demand Shock,what Are the Expected Long-Run Adjustments

Question 14

Multiple Choice

After a positive demand shock,what are the expected long-run adjustments?


A) Wages fall,price level falls,and output falls back to potential.
B) Wages rise,price level rises,and output falls back to potential.
C) Wages fall,price level rises,and output rises back to potential.
D) Wages rise,price level falls,and output falls back to potential.
E) Wages rise,price level rises,and output rises.

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