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The following statement, concerning the AD-AS model, is true: Macroeconomic equilibrium occurs at the intersection of the AD curve and the AS curve. There is

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The following statement, concerning the AD-AS model, is true: Macroeconomic equilibrium occurs at the intersection of the AD curve and the AS curve. There is a recessionary gap when equilibrium real GDP is less than full employment real GDP (potential GDP). A leftward shift of the (short-run) AS curve leads both to higher unemployment and inflation, a combination termed 'stagflation'. O all of the above

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