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Suppose Actual GDP Is $10 Billion Below Potential GDP

Question 121

Multiple Choice

Suppose actual GDP is $10 billion below potential GDP.How can the economy achieve long-run equilibrium using a passive approach?  


A)  Policymakers can stimulate aggregate demand. 
B)  The short-run aggregate supply could shift outward. 
C)  The short-run aggregate supply curve could shift to the left. 
D)  Policymakers can reduce aggregate demand.

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