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Refer to Figure 16-2. Suppose the economy starts at point A. The AD curve shifts from AD1 to AD2 and the public perfectly anticipates this.

Refer to Figure 16-2. Suppose the economy starts at point A. The AD curve shifts from AD1 to AD2 and the public perfectly anticipates this. Under new Keynesian macroeconomic assumptions, the most likely short-run equilibrium point will be a. somewhere on the line between point E and point B. b. point E. c. point B. d. somewhere on the line between point D and point B

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