If an Economy's Actual GDP Exceeds Its Potential GDP,_____

question 3

Multiple Choice

If an economy's actual GDP exceeds its potential GDP,_____.

• A)wages and prices must fall
• B)self-correcting forces will shift the SRAS curve to the left
• C)self-correcting forces will shift the AD curve to the left
• D)inflation will occur when AD shifts to the left
• E)unemployment is likely to be unusually high

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