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-Refer to the Graph in the Exhibit

Question 112

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-Refer to the graph in the exhibit.In this situation, how would long-run equilibrium be established?   A)  by a decrease of short-run aggregate supply in order to close the expansionary gap  B)  by an increase of short-run aggregate supply in order to close the expansionary gap  C)  by a decrease of short-run aggregate supply in order to close the contractionary gap  D)  by an increase of short-run aggregate supply in order to close the contractionary gap
-Refer to the graph in the exhibit.In this situation, how would long-run equilibrium be established?  


A)  by a decrease of short-run aggregate supply in order to close the expansionary gap 
B)  by an increase of short-run aggregate supply in order to close the expansionary gap 
C)  by a decrease of short-run aggregate supply in order to close the contractionary gap 
D)  by an increase of short-run aggregate supply in order to close the contractionary gap

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