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When the economy is in a boom, with a positive output gap, a. there is a tendency for the cost of capital to decrease. b.

When the economy is in a "boom," with a positive "output gap,"

a. there is a tendency for the cost of capital to decrease.

b. there is a tendency for aggregate price levels to rise.

c. there is a tendency for wages to decrease.

d. there is a tendency for capacity utilization to fall.

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