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According to the Monetarists, After an Initial Increase in Aggregate

Question 14

Multiple Choice

According to the monetarists, after an initial increase in aggregate demand, the ____ curve Will tend to shift ______, reflecting the effect of ______ in adjusting to the long run.


A) short-run aggregate supply; leftward; higher wages
B) short-run aggregate supply; leftward; lower wages
C) aggregate demand; rightward; income
D) aggregate demand; lower; price level

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