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All of the Following Are Assumptions Made by the Dynamic

Question 253

Multiple Choice

All of the following are assumptions made by the dynamic model of aggregate demand and aggregate supply except


A) aggregate demand and potential real GDP decrease continuously.
B) the aggregate demand curve shifts to the right during most periods.
C) potential real GDP increases continuously.
D) the short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages.

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