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Assuming That a Is Positive, How Are Theories of Short-Run

Question 121

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Assuming that a is positive, how are theories of short-run aggregate supply expressed mathematically?


A) quantity of output supplied = natural rate of output + a(actual price level - expected price level)
B) quantity of output supplied = natural rate of output + a(expected price level - actual price level)
C) quantity of output supplied = a(actual price level - expected price level) - natural rate of output
D) quantity of output supplied = a(expected price level - actual price level) - natural rate of output

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