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Opening up to international trade reduces potential output and both the short-run aggregate supply and long-run aggregate supply curves will shift to the left .

Opening up to international trade reduces potential output and both the short-run aggregate supply and long-run aggregate supply curves will shift to the left . If monetary policymakers do nothing, the (Click to select) will shift farther to the left to close the (Click to select) gap, resulting in a higher long-run equilibrium level of inflation

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