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QUESTION 12 Consider an economy that is originally at point O in the AD-AS diagram below. To which point will the economy adjust (in the

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QUESTION 12 Consider an economy that is originally at point O in the AD-AS diagram below. To which point will the economy adjust (in the short-run, with prices adjusting) when there is a higher inflation expectation? LRAS SRAS1 SRASo SRAS2 B que O A D AD2 ADo AD . Y YN OA OD O B OC OD Scre

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