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Which Set of Changes Is Definitely Predicted to Raise Real

Question 116

Multiple Choice

Which set of changes is definitely predicted to raise Real GDP in the short run?


A) Wealth increases and there is an adverse supply shock.
B) Individuals expect higher (future) incomes and wage rates fall.
C) Business taxes rise and wage rates fall.
D) The U.S.dollar appreciates and there is a beneficial supply shock.
E) none of the above

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