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Figure 9-4 ​

Question 194

Multiple Choice

Figure 9-4
​ Figure 9-4 ​ -In Figure 9-4, if the economy faces an inflationary gap, what must happen to reach potential GDP? A) The expenditure level must rise and/or the price level must rise. B) The expenditure level must rise and/or the price level must fall. C) The expenditure level must fall and/or the price level must fall. D) The expenditure level must fall and/or the price level must rise.
-In Figure 9-4, if the economy faces an inflationary gap, what must happen to reach potential GDP?


A) The expenditure level must rise and/or the price level must rise.
B) The expenditure level must rise and/or the price level must fall.
C) The expenditure level must fall and/or the price level must fall.
D) The expenditure level must fall and/or the price level must rise.

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