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In the Short Run,if Current Output Remains Persistently Above Potential

Question 63

Multiple Choice

In the short run,if current output remains persistently above potential ________.


A) inflation will rise causing a movement along the aggregate supply curve
B) expected inflation will rise causing an upward shift of the aggregate supply curve
C) the aggregate supply curve will shift until current output returns to its potential level
D) all of the above
E) none of the above

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