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Imagine the U.S. economy is in long-run equilibrium. Then suppose the value of the U.S. dollar appreciates. The economy has ability to adjust back to
Imagine the U.S. economy is in long-run equilibrium. Then suppose the value of the U.S. dollar appreciates. The economy has ability to adjust back to the long-run equilibrium without any active policy. The expected price level will adjust _____. Eventually bring the economy to the full employment with _____ the original equilibrium prices. upward; the same prices as upward; lower prices than downward; lower prices than downward; the same prices as downward; higher prices than
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