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Consider a Simple Macro Model with a Given Price Level

Question 42

Multiple Choice

Consider a simple macro model with a given price level and demand-determined output.An exogenous change in the price level causes a


A) shift in both the AE and AD curves.
B) movement along the AE curve and a shift in the AD curve.
C) movement along both the AE and AD curves.
D) shift in the AE curve and a movement along the AD curve.
E) movement along AE but does not affect the AD curve.

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