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Author Question: As the unemployment rate declines in response to the economy moving closer and closer to capacity ... (Read 263 times)

Sportsfan2111

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Question 1

If, when recovering from an inflationary period, the inflation rate declines and the unemployment rate also declines, this could be the result of


◦ aggregate supply increasing at a faster rate than aggregate demand is decreasing.
◦ aggregate supply increasing at a slower rate than aggregate demand is decreasing.
◦ aggregate supply decreasing at a faster rate than aggregate demand is decreasing.
◦ aggregate supply decreasing at a faster rate than aggregate demand is increasing.

Question 2

As the unemployment rate declines in response to the economy moving closer and closer to capacity output, the aggregate price level rises at a decreasing rate.


◦ true
◦ false


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Marked as best answer by Sportsfan2111 on Apr 19, 2019

olderstudent

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