Multiple Choice
If the economy is in macroeconomic equilibrium with a vertical AS curve,and then aggregate demand increases,we expect the AE function to shift to a
A) higher level and stay there.
B) higher level,but then shift part of the way down to its original position as the price level rises.
C) higher level but then return to its original position as the price level rises.
D) lower level and stay there.
E) lower level,but then return to its original position as the price level rises.
Correct Answer:

Verified
Correct Answer:
Verified
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