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"Overshooting" Refers to a Temporary Period in the Adjustment Loop

Question 125

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"Overshooting" refers to a temporary period in the adjustment loop during which


A) the percentage deviation of real GDP from natural real GDP exceeds the growth rate of nominal GDP.
B) inflation exceeds the growth rate of nominal GDP.
C) nominal GDP growth exceeds its permanent value.
D) we move from one long-run equilibrium to another.

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