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In the Figure Above, the Economy Is at an Equilibrium

Question 255

Multiple Choice

In the figure above, the economy is at an equilibrium with real GDP of $13 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the ________ curve shifts ________.


A) aggregate supply; leftward
B) aggregate supply; rightward
C) aggregate demand; rightward
D) aggregate demand; leftward
E) potential GDP; leftward

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