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An Increase in the General Price Level Will Lead to

Question 33

Multiple Choice

An increase in the general price level will lead to


A) an upward movement along the short-run aggregate supply curve as firms increase output.
B) a rightward shift of the short-run aggregate supply curve as firms increase output.
C) a downward movement along the short-run aggregate supply curve as firms decrease output.
D) a leftward shift of the short-run aggregate supply curve as firms decrease output.
E) no change in output because input prices are sticky.

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