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Assume an economy is in equilibrium at its natural rate of output and that only a fraction of the firms in the economy have fixed prices. Assume there is an advance in technological progress that makes producers more productive.

In the AD-AS model, price levels in the economy will
Select Option increasedecreasestay the same
and output levels will
Select Option increasedecreasestay the same
. In the new equilibrium the economy will
Select Option experience a short-run boomexperience a short-run recessionexperience neither a boom or recession because it is at its natural rate
.
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