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In a Situation of Stagflation, the Use of Aggregate Demand-Oriented

Question 3

Multiple Choice

In a situation of stagflation, the use of aggregate demand-oriented macro policy to address the problem of the rising price level would, at least in the short run, __________ the price level and __________ the level of output in the economy.


A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Correct Answer:

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