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If an Economy Is in Short-Run Equilibrium and the Level

Question 177

Multiple Choice

If an economy is in short-run equilibrium and the level of actual real GDP is greater than potential output,in the long run nominal wages will _____ and the _____ curve will shift _____,bringing the economy back to its potential real GDP.


A) rise;SRAS;left
B) rise;AD;right
C) fall;SRAS;right
D) fall;AD;left

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