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Figure 15-2 -In Figure 15-2,suppose the Economy Is at a Short Run

Question 3

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Figure 15-2 Figure 15-2 -In Figure 15-2,suppose the economy is at a short run equilibrium at point A and the Bank of Canada announces that the money supply will be increased over the next six months.What point represents the new equilibrium according to the rational expectations theory? A) A B) B C) C D) D
-In Figure 15-2,suppose the economy is at a short run equilibrium at point A and the Bank of Canada announces that the money supply will be increased over the next six months.What point represents the new equilibrium according to the rational expectations theory?


A) A
B) B
C) C
D) D

Correct Answer:

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