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Based on the figure above, the aggregate demand curve will shift from AD0 to AD2 when
A) potential GDP increases.
B) the price level falls.
C) taxes are lowered.
D) government expenditure decreases.
E) the price level rises.
Correct Answer:
Verified
Q37: A rise in the money wage rate
Q38: Q39: Q40: When potential GDP increases, Q41: During the late 1960s, U.S. defense spending Q43: If real GDP is less than potential Q44: The aggregate supply curve slopes --------------------because a-------------------- Q45: The slope of the aggregate supply curve Q46: As the money wage rate increases, Q47: When the macroeconomic equilibrium is such that
A)there is neither a
A)potential GDP
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