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If Spending Grows by 3%,real GDP Grows by 5%,and Velocity

Question 31

Multiple Choice

If spending grows by 3%,real GDP grows by 5%,and velocity is stable,then prices will be _____ at a rate of _____ according to the aggregate demand curve.


A) falling;3%
B) falling;2%
C) rising;3%
D) rising;2%

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