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In the Graphs Below, QP Refers to the Economy's Potential

question 131

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In the graphs below, QP refers to the economy's potential output level. In the graphs below, Q<sub>P</sub> refers to the economy's potential output level.   Refer to the graphs above. Graph A is constructed on the basic assumption that: A)  The price level is not flexible B)  Nominal wages are unresponsive to price-level changes C)  Real output is unresponsive to price-level changes D)  Unemployment is unresponsive to price-level changes Refer to the graphs above. Graph A is constructed on the basic assumption that:


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