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Figure 8-5 -In the Figure Above, a Crucial Assumption That Goes into That

Question 70

Multiple Choice

Figure 8-5 Figure 8-5 -In the figure above, a crucial assumption that goes into positioning the SP curve in the bottom diagram is that A) the wage rate is 1.00. B) expected inflation is zero. C) expected inflation is 5 percent. D) the AD curve is AD1. E) the shift of AD1 to AD2 will be repeated continuously.
-In the figure above, a crucial assumption that goes into positioning the SP curve in the bottom diagram is that


A) the wage rate is 1.00.
B) expected inflation is zero.
C) expected inflation is 5 percent.
D) the AD curve is AD1.
E) the shift of AD1 to AD2 will be repeated continuously.

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