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sgy_89 sgy_89
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7 years ago
Based on the figure above, suppose consumer pessimism reduces aggregate demand from AD1 to AD2. If the economy is allowed to correct itself, full employment will be restored in the long run when
A) the aggregate demand curve shifts back to its original position.
B) falling wages and input prices shift the aggregate supply curve to the right.
C) potential GDP is reduced to $3 trillion.
D) wage and input contracts expire and are renegotiated upward.
Textbook 
Introduction to Economic Reasoning

Introduction to Economic Reasoning


Edition: 8th
Author:
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foliogefolioge
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sgy_89 Author
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7 years ago
This helped my grade so much Perfect
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this is exactly what I needed
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Thanks for your help!!
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