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    Exam 17: The Short-Run Tradeoff Between Inflation and Unemployment
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    When Aggregate Demand Decreases, What Happens to Prices and Employment
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When Aggregate Demand Decreases, What Happens to Prices and Employment

Question 193

Question 193

Multiple Choice

When aggregate demand decreases, what happens to prices and employment?


A) Prices will fall and unemployment will rise.
B) Prices and unemployment fall.
C) Prices and unemployment rise.
D) Prices will rise and unemployment will fall.

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