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Refer to the Figure Below

Question 57

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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as   A)  Aggregate demand shifting leftward B)  Short-run aggregate supply shifting upward C)  Short-run aggregate supply shifting downward D)  long-run aggregate supply shifting leftward


A) Aggregate demand shifting leftward
B) Short-run aggregate supply shifting upward
C) Short-run aggregate supply shifting downward
D) long-run aggregate supply shifting leftward

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