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    Economics Study Set 8
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    Exam 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
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    According to the Short-Run Aggregate Supply Curve, Firms Are Most
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According to the Short-Run Aggregate Supply Curve, Firms Are Most

Question 204

Question 204

Multiple Choice

According to the short-run aggregate supply curve, firms are most likely to respond to an increase in aggregate demand by raising:


A) prices.
B) production.
C) both production and prices.
D) neither production nor prices.

Correct Answer:

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