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    Economics Principles and Policy Study Set 2
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    Exam 26: Bringing in the Supply Side: Unemployment and Inflation
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    As the Multiplier Process Is Working on the Demand Side
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As the Multiplier Process Is Working on the Demand Side

Question 42

Question 42

Multiple Choice

As the multiplier process is working on the demand side,


A) firms will meet the additional demand without raising prices.
B) firms will meet the additional demand only by raising prices.
C) firms will not meet the additional demand.
D) the multiplier process will cease creating demand.

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