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Business, 19.11.2019 06:31 Demondevilg

Within the ad/as model, which one of the following adjustments will cause the economy to return to its long-run capacity when output is temporarily greater than the economy's long-run potential?
a. lower wage rates and resource prices reduce short-run aggregate supply.
b. lower interest rates increase aggregate demand and, thereby, stimulate output.
c. higher wage rates and resource prices reduce short-run aggregate supply.
d. a decrease in prices reduces aggregate demand.

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