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PO D AD2 AD1 YP Yl real GDP Refer to the figure above. Suppose the economy is producing at point A. Which of the following
PO D AD2 AD1 YP Yl real GDP Refer to the figure above. Suppose the economy is producing at point A. Which of the following best describes the adjustment back to the natural level of output? O Wages and input prices rise and the new equilibrium in point B. O Wages and input prices fall and the new equilibrium is point D. O Aggregate demand decreases and the new equilibrium point is D. O Aggregate supply increases and in the new equilibrium point is D. O The economy will not adjust back to the natural level in this case
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