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(Solved): Without any policy interventions, the country of Myto has automatically returned to long-run equilib ...



Without any policy interventions, the country of Myto has automatically returned to long-run equilibrium after experiencing a recessionary gap. Which of the following conditions must have existed for this self-adjustment to long-run equilibrium to occur? Trade unions were strengthened, providing more income for their members. Industrial investment increased, which increased stock prices. Nominal wages decreased as workers accepted cuts in their earnings. D The central bank added to its portfolio by purchasing bonds on the open market. @ Wages and prices were sticky at levels of output less than full employment.



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