Figure 27-1 -Refer to Figure 27-1.Suppose the Economy Is in Short-Run Equilibrium

question 191

Multiple Choice

Figure 27-1
-Refer to Figure 27-1.Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising.If contractionary policy is used to move the economy back to long run equilibrium,this would be depicted as a movement from ________ using the static AD-AS model in the figure above.

• A)D to C
• B)C to B
• C)A to E
• D)B to A
• E)E to A

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Definitions:

Gay or Lesbian

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