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Suppose That the Money Prices of Raw Materials Rise

Question 72

Multiple Choice

Suppose that the money prices of raw materials rise.With no action by the Bank of Canada, I.the aggregate demand curve shifts rightward and the price level rises.
II.the aggregate demand curve shifts rightward and the aggregate supply curve shifts leftward.
III.the initial outcome is lower employment and a rise in the price level.


A) I only
B) II only
C) III only
D) I and II only
E) I, II, and III

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