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It Seems Likely That If the Inflation Rate Falls Below

Question 199

Multiple Choice

It seems likely that if the inflation rate falls below some threshold level,it may impair the productive capacity of the economy,and the damage is likely to get worse at lower rates of inflation.If so,the LRAS line would


A) bend upward to the right below the threshold inflation rate.
B) bend upward to the left below the threshold inflation rate.
C) not bend in either direction below the threshold inflation rate.
D) bend downward to the left below the threshold inflation rate.
E) bend downward to the right below the threshold inflation ratE.

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