Suppose the economy is in short-run equilibrium at a level of output that exceeds potential output. How

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Suppose the economy is in short-run equilibrium at a level of output that exceeds potential output. How would the economy self-adjust to return to long-run equilibrium?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Oct 02, 2014 08:15 AM

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Suppose the economy is in short-run equilibrium at a level of output that exceeds potential output. How

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The expansionary gap exerts upward pressure on costs shifting the ...View the full answer

Money Banking and Financial Markets

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