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    Macroeconomics Study Set 40
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    Exam 10: Aggregate Supply and Aggregate Demand
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    If the Expected Future Inflation Rate Decreases, Then
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If the Expected Future Inflation Rate Decreases, Then

Question 120

Question 120

Multiple Choice

If the expected future inflation rate decreases, then


A) aggregate demand increases.
B) aggregate demand decreases.
C) short- run aggregate supply increases.
D) short- run aggregate supply decreases.

Correct Answer:

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