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When All Prices (Including Wages) Have Fully Adjusted to Previous

Question 69

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When all prices (including wages) have fully adjusted to previous shifts in aggregate supply or demand and the flow of spending, saving, borrowing, and lending will continue until something else changes, this is called


A) the substitution-of-foreign-goods effect.
B) the wealth effect or real-balances effect.
C) the constant nominal income effect.
D) long-run equilibrium.

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