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Exhibit 10-2 -In Exhibit 10-2,if P1 Is the Prevailing Price Level,then

Question 27

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Exhibit 10-2 Exhibit 10-2 -In Exhibit 10-2,if P<sub>1</sub> is the prevailing price level,then A) there is an expansionary gap B) the price level will decrease C) the expected price level is the same as the actual price level D) the unemployment rate is below the natural unemployment rate E) potential output is less than the actual level of output
-In Exhibit 10-2,if P1 is the prevailing price level,then


A) there is an expansionary gap
B) the price level will decrease
C) the expected price level is the same as the actual price level
D) the unemployment rate is below the natural unemployment rate
E) potential output is less than the actual level of output

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