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sgy_89 sgy_89
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7 years ago
Based on the figure above, suppose an increase in aggregate wealth shifts aggregate demand from AD1 toAD2, and moves the economy beyond potential. If the economy is left to correct itself, full employment will be restored in the long run when
A) wages and input prices fall, and shift the aggregate supply curve downward.
B) aggregate demand decreases back to its original level.
C) contracts expire and workers and input suppliers demand higher wages and input prices, respectively.
D) potential GDP expands to $6 trillion.
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
Helped a lot
rudy.zondo
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This calls for a celebration Person Raising Both Hands in Celebration
gage
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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