Economys self-correcting adjustments process

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As an inflationary gap is eliminated through an economy's self-correcting adjustments process,

the equilibrium price level increases and the equilibrium real output decreases.

the equilibrium price level decreases and the equilibrium real output increases.

the equilibrium price level and the equilibrium real output increase.

the equilibrium price level and the equilibrium real output decrease.

Reference no: EM13833984

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