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If,at the Short-Run Equilibrium,an Expansionary Gap Exists,the

Question 155

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If,at the short-run equilibrium,an expansionary gap exists,the


A) IA line will move upward until actual output equals potential output.
B) IA line will move downward until actual output equals potential output.
C) LRAS line will move upward until actual output equals potential output.
D) LRAS line will move downward until actual output equals potential output.
E) LRAS line and IA line will move downward until actual output equals potential output.

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