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-In the Above Figure, If We Start at AD₁ and SRAS₁

Question 167

Multiple Choice

-In the above figure, if we start at AD₁ and SRAS₁, and the money supply increases unexpectedly, what would be the short-run equilibrium even with rational expectations? A) E₁ B) E₂ C) E₃ D) P₁
-In the above figure, if we start at AD₁ and SRAS₁, and the money supply increases unexpectedly, what would be the short-run equilibrium even with rational expectations?


A) E₁
B) E₂
C) E₃
D) P₁

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