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In the long run, a permanent positive supply shock, which shifts the LRAS curve to the right, will: Question 10 options: cause the real exchange
In the long run, a permanent positive supply shock, which shifts the LRAS curve to the right, will: Question 10 options: cause the real exchange rate to depreciate in order to bring demand in line with the now higher potential output none of the options shown cause the real exchange rate to appreciate as markets take a positive view of the economy will leave the real exchange rate unchanged due to exchange rate neutrality
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