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If an Economy's Actual GDP Exceeds Its Potential GDP,_____

Question 3

Multiple Choice

If an economy's actual GDP exceeds its potential GDP,_____.


A) wages and prices must fall
B) self-correcting forces will shift the SRAS curve to the left
C) self-correcting forces will shift the AD curve to the left
D) inflation will occur when AD shifts to the left
E) unemployment is likely to be unusually high

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