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In a two-period model with production, a shock that shifts the output demand curve to the right, and

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In a two-period model with production, a shock that shifts the output demand curve to the right, and

In a two-period model with production, a shock that shifts the output demand curve to the right, and does not shift the output supply curve
A) causes a decrease in the current account surplus and no change in real output.
B) causes a decrease in the current account surplus and an increase in real output.
C) causes an increase in the current account surplus and an increase in real output.
D) causes no change in the current account surplus and an increase in real output.

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Macroeconomics

Edition: 5^th

Author: Williamson

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