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Suppose That the Economy Begins at a Long-Run Equilibrium

Question 74

Multiple Choice

Suppose that the economy begins at a long-run equilibrium. Which of the following raises the price level and decrease real GDP in the short run?


A) an increase in the price of oil that decreases aggregate supply
B) a decrease in the quantity of money
C) an increase in the stock of capital that increases aggregate supply
D) an increase in government expenditures

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