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Along a Short-Run Aggregate Supply Curve, a Decrease in the Price

Question 181

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Along a short-run aggregate supply curve, a decrease in the price level means that


A) output does not change because firms do not change the quantity they produce.
B) more output is produced as consumer demand increases.
C) more output is produced as firms increase production because wages fall more than the price level falls, making it profitable to hire more workers.
D) less output is produced as firms decrease production.

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