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According to the Passive Policy Maker's Position,an Expansionary Gap Will

Question 126

Multiple Choice

According to the passive policy maker's position,an expansionary gap will be eliminated because


A) the short-run aggregate supply will shift to the left
B) the short-run aggregate supply will shift to the right
C) rising prices will shift the aggregate demand to the left
D) wages will fall relatively quickly
E) aggregate demand will shift to the right as wages increase

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