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If the Short-Run Aggregate Supply Increases by Less Than the Long-Run

Question 67

Multiple Choice

If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium,


A) GDP will be below potential GDP.
B) aggregate demand will increase.
C) GDP will be above potential GDP.
D) GDP will be equal to potential GDP.
E) unemployment will fall.

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