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    Economics A Contemporary Introduction
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    Exam 11: Aggregate Supply
  5. Question
    Actual Output Falls Below Potential Output
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Actual Output Falls Below Potential Output

Question 99

Question 99

Multiple Choice

Actual output falls below potential output


A) during a recession
B) when aggregate demand exceeds aggregate supply
C) when the natural rate of unemployment exceeds the actual rate of unemployment
D) when the natural rate of unemployment is zero
E) when short run aggregate supply exceeds long run aggregate supply

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