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When the Aggregate Demand Curve and the Short-Run Aggregate Supply

Question 132

Multiple Choice

When the aggregate demand curve and the short-run aggregate supply curve intersect,


A) the long-run aggregate supply curve must also intersect at the same point.
B) inflation must be increasing.
C) structural and frictional unemployment equal zero.
D) the economy is in short-run macroeconomic equilibrium.
E) the economy likely to experience higher than normal unemployment.

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