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In the Short Run, a Decrease in the Price of a Major

Question 155

Multiple Choice

In the short run, a decrease in the price of a major input such as oil will:


A) decrease the price level and increase the level of output.
B) increase the price level and increase the level of output.
C) decrease both the price level and the level of output.
D) increase the price level and decrease the level of output.

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