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The U.S. economy has finally reached full employment when the following event occursconsumer confidence fades as inflation lowers the purchasing power of the dollar. Explain
The U.S. economy has finally reached full employment when the following event occursconsumer confidence fades as inflation lowers the purchasing power of the dollar. Explain the effect of this event on RGDP and the Price Level using the AD-AS model. Will the economy experience a recessionary gap or an inflationary gap after this event? Group of answer choices Both Real GDP and the Price Level rise. The economy will experience an inflationary gap. The effect on RGDP will be undetermined and the Price Level will fall. The economy will experience an inflationary gap. RGDP is unchanged and the Price Level falls. The economy will experience a recessionary gap. Both Real GDP and the Price Level fall. The economy will experience a recessionary gap
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