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The Figure Below Shows the Short-Run Aggregate Supply Curve of an Economy.If

question 44

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The figure below shows the short-run aggregate supply curve of an economy.If P3 is the price level prevailing in the economy,_____.​ ​
Figure 10.1
The figure below shows the short-run aggregate supply curve of an economy.If P<sub>3</sub> is the price level prevailing in the economy,_____.​ ​ Figure 10.1   A) there is an expansionary gap. B) there is a recessionary gap. C) the price level will rise. D) the actual unemployment rate is above the natural rate. E) potential output is greater than actual output.

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Definitions:

Consideration

Something of value that is exchanged between parties in a contract, making the agreement legally binding.

Personal Defense

A defense that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC. Personal defenses are also called limited defenses.

HDC

Stands for Holder in Due Course, referring to a party that has acquired a negotiable instrument for value, in good faith, and without notice of any defects.

Primarily Liable

The entity or individual who holds the main responsibility for fulfilling an obligation or compensating for a loss.

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