Multiple Choice
-The figure above illustrates the aggregate demand, short- run aggregate supply, and long- run aggregate supply in Lotus Land. The economy is currently at point D and the government decreases its taxes. The economy will move to . The price level will , and the change in real GDP will be the increase in aggregate demand.
A) point A; fall; less than
B) point C; rise; less than
C) point D; rise; less than
D) point B; remain constant; the same as
Correct Answer:
Verified
Correct Answer:
Verified
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