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If an Economy's Actual GDP Exceeds Its Potential GDP, _____

Question 179

Multiple Choice

If an economy's actual GDP exceeds its potential GDP, _____


A) wages and prices must fall.
B) self-correcting forces will shift the SRAS curve to the left.
C) self-correcting forces will shift the AD curve to the left.
D) inflation will occur when AD shifts to the left.
E) unemployment is likely to be unusually high.

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