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Use the figure below to answer the following questions. Price level (GDP deflator, 2002 - 100) LAS 130 120 -SAS 110 - SASo 100 90

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Use the figure below to answer the following questions. Price level (GDP deflator, 2002 - 100) LAS 130 120 -SAS 110 - SASo 100 90 AD 350 400 450 500 550 600 Real GDP (billions of 2002 dollars) Figure 28.1.2 14) Refer to Figure 28.1.2. The economy is in long- run equilibrium. If the short-run aggregate supply curve shifts leftward from SASO to SAS1, ceteris paribus, then people expected A) the in level to rise to 110. B) a 15 % inflation. C) the real salary rate to fall by 10 %. D) a real GDP decrease of $50 billion. E) a 10 % inflation

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