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When a Central Bank Attempts to Stop a Constant Inflation,it

Question 35

Multiple Choice

When a central bank attempts to stop a constant inflation,it tries to remove the inflationary gap by


A) shifting the AS curve upward.
B) shifting the AS curve downward.
C) increasing the rightward shift of the AD curve.
D) stopping the rightward shift of the AD curve.
E) taking no action and allowing the market to correct itself.

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