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If a Demand Shock Causes the Economy to Move to a Real

Question 115

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If a demand shock causes the economy to move to a real GDP level that is below its full employment level,then


A) we refer to this as a positive demand shock.
B) the economy will remain at this point in the long run.
C) the AS curve will adjust in the long run until the economy returns to full employment.
D) the AD curve will move back to its original position in the long run.
E) the unemployment rate will decline.

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