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As a Contractionary Gap Is Closed in the Long Run

Question 115

Multiple Choice

As a contractionary gap is closed in the long run by firms' actions,


A) nominal and real GDP both decline
B) nominal and real GDP both increase
C) nominal GDP increases but real GDP declines
D) nominal GDP declines but real GDP increases
E) real GDP increases,but nominal GDP can increase,decrease,or remain the same

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