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If the Aggregate Supply Curve Is Vertical, an Increase in Aggregate

Question 38

Multiple Choice

If the aggregate supply curve is vertical, an increase in aggregate demand will


A) increase both real and nominal GDP by the full multiplier effect.
B) increase real GDP but not nominal GDP.
C) increase the price level but not real GDP.
D) increase real GDP by less than the full multiplier effect because of rising prices.

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