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For an economy starting from potential output, an increase in planned investment in the short run results in a

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For an economy starting from potential output, an increase in planned investment in the short run results in a(n):

A. expansionary output gap.

B. recessionary output gap.

C. increase in potential output.

D. decrease in potential output.

E. increase in cyclical unemployment.

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  1. A. expansionary output gap.

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