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Based on the Figure Below

Question 154

Multiple Choice

Based on the figure below. An economy is currently in long-run equilibrium at point B, at an inflation rate of π', which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ___ and eventually to a long-run equilibrium at point ____. Based on the figure below. An economy is currently in long-run equilibrium at point B, at an inflation rate of π',<sub> </sub>which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ___ and eventually to a long-run equilibrium at point ____. A) A; B B) A; C C) B; A D) B; C


A) A; B
B) A; C
C) B; A
D) B; C

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