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    Macroeconomics Study Set 48
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    Exam 12: Aggregate Demand and Aggregate Supply
  5. Question
    As an Inflationary Gap Self-Corrects, the Equilibrium Price Level _____
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As an Inflationary Gap Self-Corrects, the Equilibrium Price Level _____

Question 22

Question 22

Multiple Choice

As an inflationary gap self-corrects, the equilibrium price level _____ and the equilibrium real output _____.


A) rises; decreases
B) rises; increases
C) falls; decreases
D) falls; increases

Correct Answer:

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