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Refer to the Graph Above

question 58

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Refer to the graph above. Assume the economy is at the initial position of B<sub>2</sub>. An increase in aggregate demand with a corresponding adjustment in inflation expectations and wages will tend to: A) Move the economy to point B<sub>3</sub> B) Move the economy to point C<sub>2</sub> C) Move the economy to point C<sub>1</sub> D) Have no effect in shifting the economy from point B<sub>2</sub> Refer to the graph above. Assume the economy is at the initial position of B2. An increase in aggregate demand with a corresponding adjustment in inflation expectations and wages will tend to:

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