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Retnec Retnec
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6 years ago
Based on the figure above, suppose the economy is in short-run equilibrium at an output of $2,500 billion. If activist policies are not used, the economy will
A) return to an output of $2,000 billion when wage contracts expire and the aggregate demand curve shifts to the left.
B) remain at an output of $2,500 billion indefinitely.
C) return to an output of $2,000 billion when wage contracts are renegotiated and the aggregate supply curve shifts left.
D) return to an output of $2,000 billion when the aggregate demand curve automatically shifts back to AD2.
Textbook 
Introduction to Economic Reasoning

Introduction to Economic Reasoning


Edition: 8th
Author:
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VilaVila
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6 years ago
You make an excellent tutor!
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This helped my grade so much Perfect
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