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Exhibit 10.3 -Refer to Exhibit 10.3, Which Shows an Aggregate Demand-Aggregate Supply

Question 153

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Exhibit 10.3
Exhibit 10.3 -Refer to Exhibit 10.3, which shows an aggregate demand-aggregate supply model. Which of these situations will be experienced by the economy as it moves from point e to point e'? A) an expansionary gap B) a decline in potential GDP C) overutilization of resources D) deflation E) cost-push inflation
-Refer to Exhibit 10.3, which shows an aggregate demand-aggregate supply model. Which of these situations will be experienced by the economy as it moves from point e to point e'?


A) an expansionary gap
B) a decline in potential GDP
C) overutilization of resources
D) deflation
E) cost-push inflation

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