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Aggregate Demand and Supply Analysis

question 5

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Aggregate Demand and Supply Analysis Aggregate Demand and Supply Analysis   -In the figure above,assume that output is $10.5 trillion,while potential output is $12 trillion.If there is no policy intervention,we should expect ________. A) rightward shifts of IS & AD,so that both output and inflation rise B) a decrease in inflation to shift the MP curve,raising the real interest rate C) declines in both the inflation rate and the real interest rate as output rises D) a decrease in inflation to shift the AD curve,causing output to rise E) none of the above
-In the figure above,assume that output is $10.5 trillion,while potential output is $12 trillion.If there is no policy intervention,we should expect ________.


Definitions:

Enter Bills

The process of recording invoices received from suppliers into the accounting system.

Purchase Order

A commercial document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services.

Receiving a Bill

The act of recording the receipt of an invoice from a vendor for goods or services purchased on credit.

Memorized Transactions

Transactions saved in QuickBooks for future use, which can simplify repetitive billing, invoicing, and other financial processes.

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