Multiple Choice
If GDP exceeds its full-employment level in the short run, what will take place to restore general equilibrium?
A) Price level will rise, causing LM to shift upward.
B) Price level will rise, causing LM to shift downward.
C) Price level will fall, causing LM to shift upward.
D) Price level will fall, causing LM to shift downward.
Correct Answer:
Verified
Correct Answer:
Verified
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