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Assuming an Upward-Sloping Short-Run Aggregate Supply Curve, a Decrease in Government

Question 12

Multiple Choice

Assuming an upward-sloping short-run aggregate supply curve, a decrease in government spending results in ________ in output and ________ in prices in the short run.


A) a decrease; a slight decrease
B) an increase; no change
C) an increase; a slight increase
D) no change; a decrease

Correct Answer:

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