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Suppose Resource Suppliers and Demanders Find Out That Their Price

Question 119

Multiple Choice

Suppose resource suppliers and demanders find out that their price expectations were wrong.What will occur when they take corrective actions?  


A)  The corrective actions will cause the economy to move away from the potential output level. 
B)  The corrective actions will raise the unemployment level above the natural rate of unemployment. 
C)  The corrective actions will shift the aggregate demand curve. 
D)  The corrective actions will shift the short-run aggregate supply curve.

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