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The Figure Below Shows the Relationship Between an Economy's Potential

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The figure below shows the relationship between an economy's potential output,price level,and real GDP.According to those who favor a passive approach to policy,the economy will attain equilibrium at potential output when: ​
Figure 16.1​

The figure below shows the relationship between an economy's potential output,price level,and real GDP.According to those who favor a passive approach to policy,the economy will attain equilibrium at potential output when: ​ Figure 16.1​ ​   A) the short-run aggregate supply curve shifts to the left. B) the short-run aggregate supply curve shifts to the right due to a fall in real wages. C) either the money supply or government spending is increased. D) either the money supply or government spending is decreased. E) aggregate demand is decreased.


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