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If the Economy Is at Potential GDP and the Fed

Question 3

Multiple Choice

If the economy is at potential GDP and the Fed makes an open market sale of government securities,in the long run the aggregate ________ curve shifts ________ and the price level ________.


A) demand; rightward; rises
B) supply; leftward; rises
C) demand; leftward; falls
D) supply; leftward; falls

Correct Answer:

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