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New Classical Economists Say That a Fully Anticipated Decrease in Aggregate

Question 102

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New classical economists say that a fully anticipated decrease in aggregate demand


A) shifts the long-run aggregate supply curve to the right.
B) shifts the long-run aggregate supply curve to the left.
C) moves the economy down along its vertical long-run aggregate supply curve.
D) eventually results in a self-correcting increase in aggregate demand.

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