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Consider the AD/AS Model

Question 5

Multiple Choice

Consider the AD/AS model.Suppose there is a decrease in aggregate demand and,simultaneously,an increase in aggregate supply.The result will be a


A) rise in real GDP but price level changes will be indeterminate.
B) rise in real GDP and a rise in the price level.
C) rise in real GDP and a fall in the price level.
D) an indeterminate change in real GDP and a rise in the price level.
E) an indeterminate change in real GDP and a fall in the price level.

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