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The diagram above shows a nation's short - run aggregate supply ( SRAS ) curve, long - run aggregate supply ( LRAS ) curve, and

The diagram above shows a nation's short-run aggregate supply (SRAS) curve, long-run aggregate supply (LRAS) curve, and aggregate demand (AD) curve.1. Based on the diagram above, which of the following describes what will happen in the long-run adjustment process? (A) The natural rate of unemployment will increase.(B) Potential real GDP will increase.(C) Aggregate demand will decrease.(D) Short-run aggregate supply will increase.(E) Wages and input prices will increase.

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