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Price Level LRAS SRAS PA D P3 B ADA A AD3 AD2 AD, Y1 Yz Ya YA Note: SRAS curve is the AS curve ,

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Price Level LRAS SRAS PA D P3 B ADA A AD3 AD2 AD, Y1 Yz Ya YA Note: SRAS curve is the AS curve , LRAS curve is the potential GDP /full employment GOP curve If fiscal policy moves the economy from equilibrium A to equilibrium B O A) the economy has not been restored to its full potential output O B) the economy has been restored to its full potential output O C) The economy has overheated and equilibrium has pushed output beyond its potential O D) unemployment has increased

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