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An Inflationary Gap Will Be Eliminated Because There Is _____

Question 2

Multiple Choice

An inflationary gap will be eliminated because there is _____ pressure on wages, shifting the _____.


A) downward; long-run aggregate supply curve to the right
B) downward; long-run aggregate supply curve to the left
C) downward; aggregate demand curve to the left
D) upward; short-run aggregate supply curve to the left

Correct Answer:

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