When the economy is on the short-run aggregate supply curve

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When the economy is on the short-run aggregate supply curve and to the left of the long-run aggregate supply curve, actual aggregate output will eventually equal potential output as: nominal wages fall and the short-run aggregate supply curve shifts to the right. the aggregate price level falls and the long-run aggregate supply curve shifts to the left. nominal wages fall and the long-run aggregate supply curve shifts to the left. the aggregate price level falls and the aggregate demand curve shifts to the right.

Reference no: EM13982350

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