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    Exam 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
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    An Increase in Aggregate Demand
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An Increase in Aggregate Demand

Question 163

Question 163

Multiple Choice

An increase in aggregate demand:


A) raises potential output.
B) reduces potential output.
C) does not change potential output.
D) has an unpredictable effect on potential output.

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