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GDP deflator AS, AS, AS 3 2 3 5 6 > 8 9 AD, AD 3 AD Real GDP Figure 1: Aggregate Demand and Aggregate

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GDP deflator AS, AS, AS 3 2 3 5 6 > 8 9 AD, AD 3 AD Real GDP Figure 1: Aggregate Demand and Aggregate Supply Curves, with potential GDP)Suppose that the economy is initially described by A53 and AD3. In the long run the economy naturally adjusts back towards potential Y*. Which point describes its ultimate resting place (1-9 are appropriate answers)

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