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Refer to the Graph Shown

question 153

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Refer to the graph shown.In the graph, if the price level is P0 and the aggregate demand curve is AD0, then the economy is in: Refer to the graph shown.In the graph, if the price level is P<sub>0</sub> and the aggregate demand curve is AD<sub>0,</sub> then the economy is in:   A) a recessionary gap. B) an inflationary gap. C) a long-run equilibrium. D) a short-run equilibrium but not a long-run equilibrium.


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