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Referring to the diagram below, which of the following is a true statement? SRAS AD2 Output 02 Short -run increased output will lower output costs

Referring to the diagram below, which of the following is a true statement? SRAS AD2 Output 02 Short -run increased output will lower output costs , but demand for higher profits will increase prices Higher cost levels will result because government will increase taxes as output rises. Higher cost levels of increased output will force an increase in price for the product Short -run lower output costs will result because government will decrease taxes as output rises

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