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    Macroeconomics Study Set 38
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    Exam 14: The Great Recession and the Short-Run Model
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    Adding a Financial Friction to the Short-Run Model
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Adding a Financial Friction to the Short-Run Model

Question 39

Question 39

Multiple Choice

Adding a financial friction to the short-run model:


A) shifts the MP curve down.
B) shifts the AD curve down.
C) shifts the IS curve up.
D) All of these answers are correct.
E) None of these answers is correct.

Correct Answer:

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