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1.If the economy is operating below the normal level of output ( Y* ), then: A.Prices must be lower than P* B.Until aggregate demand shifts,

1.If the economy is operating below the normal level of output (Y*), then:

A.Prices must be lower than P*

B.Until aggregate demand shifts, output will remain below Y*

C.The central bank should lower interest rates

D.The information is insufficient to respond

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