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Exhibit 11-2 -In Exhibit 11-2, If P3 Is the Prevailing Price Level

Question 20

Multiple Choice

Exhibit 11-2 Exhibit 11-2 -In Exhibit 11-2, if P<sub>3</sub> is the prevailing price level, then A) the expected price level is less than the actual price level B) there is a contractionary gap C) the price level will rise D) the actual unemployment rate is above the natural rate E) potential output is greater than actual output
-In Exhibit 11-2, if P3 is the prevailing price level, then


A) the expected price level is less than the actual price level
B) there is a contractionary gap
C) the price level will rise
D) the actual unemployment rate is above the natural rate
E) potential output is greater than actual output

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