If contractionary policy brings output below the full-employment level of GDP the natural rate of unemployment...

 

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If contractionary policy brings output below the full-employment level of GDP the natural rate of unemployment will fall. the short-run aggregate supply curve will shift to the left. the short-run aggregate supply curve will shift to the right production costs will decrease. If contractionary policy brings output below the full-employment level of GDP the natural rate of unemployment will fall. the short-run aggregate supply curve will shift to the left. the short-run aggregate supply curve will shift to the right production costs will decrease.

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