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    Principles of Macroeconomics Study Set 12
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    Exam 12: Policy Effects and Cost Shocks in the Asad Model
  5. Question
    If Equilibria Below Potential Output Are Self-Correcting, the Economy Will
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If Equilibria Below Potential Output Are Self-Correcting, the Economy Will

Question 35

Question 35

True/False

If equilibria below potential output are self-correcting, the economy will spend a great deal of time on the horizontal part of the aggregate supply curve.

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