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Exhibit 11.2 Refer to Exhibit 11.2, which shows the relationship between the price level and real GDP. Suppose the economy is currently at e'. If

Exhibit 11.2 Refer to Exhibit 11.2, which shows the relationship between the price level and real GDP. Suppose the economy is currently at e'. If the government implements a contractionary fiscal policy, the economy would move to _____ a. point e''. b. point e'. c. a point between e* and e' on the short-run aggregate supply line. d. a point between e* and e'' on the potential output line. e. point e*

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