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(Figure 16.1) Which panel best illustrates the effects of supply-side policies designed to increase the capacity of the economy? Aggregate Supply Price Level Inflation Rate

(Figure 16.1) Which panel best illustrates the effects of supply-side policies designed to increase the capacity of the economy?

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Aggregate Supply Price Level Inflation Rate Unemployment Output Rate (a) (b) Aggregate Aggregate Supply Supply Price Level Price Level Aggregate Aggregate Demand Demand Output Output (c) (d) Figure 16.1

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