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    Exam 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
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    If Productivity Increases by 3 Percent but Wages Increase by 4
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If Productivity Increases by 3 Percent but Wages Increase by 4

Question 37

Question 37

Multiple Choice

If productivity increases by 3 percent but wages increase by 4 percent, then it is most likely that the price level will:


A) rise by 1 percent.
B) fall by 1 percent.
C) rise by 7 percent.
D) fall by 7 percent.

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