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According to the Aggregate Demand Aggregate Supply Diagram, Policy Makers

Question 115

Multiple Choice

According to the Aggregate Demand Aggregate Supply diagram, policy makers face a short-term trade-off between _________ when implementing anti-inflation policies.


A) long-term equilibrium and short-term equilibrium
B) inflation and expansion
C) recession and stagflation
D) inflation and unemployment

Correct Answer:

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