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The Economy Cannot Remain Indefinitely with Real GDP Greater Than

Question 109

Multiple Choice

The economy cannot remain indefinitely with real GDP greater than potential GDP because the money wage rate will


A) decrease, shifting the LAS curve rightward.
B) decrease, shifting the SAS curve rightward.
C) increase, shifting the LAS curve leftward.
D) increase, shifting the SAS curve leftward.
E) increase, shifting the SAS curve rightward.

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