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    Macroeconomics Study Set 43
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    Exam 12: A: Aggregate Demand and Aggregate Supply
  5. Question
    What Is the Effect on the Multiplier When an Increase
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What Is the Effect on the Multiplier When an Increase

Question 12

Question 12

Essay

What is the effect on the multiplier when an increase in aggregate demand also causes the price level to rise?

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The multiplier effect is weakened with p...

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