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What occurs when input prices and output prices are fully flexible and have time to adjust to changes in aggregate demand or short-run aggregate supply?

What occurs when input prices and output prices are fully flexible and have time to adjust to changes in aggregate demand or short-run aggregate supply? Multiple choice question. The economy begins producing at a lower output. The economy begins producing at a higher output. The economy always returns to producing at potential output. The economy is not affected at all

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