Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP falls?
A) AD did not shift and SRAS shifted to the left. B) AD shifted to the right by less than SRAS.
C) SRAS shifted to the right by more than LRAS. D) AD shifted to the right by more than SRAS.
A
Economics
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horizontal axis of the money demand curve.
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Expansionary fiscal policy may have an even smaller effect on aggregate demand in the open economy than a closed economy
a. True b. False Indicate whether the statement is true or false
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