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For a Given Level of Inflation, If Bright Prospects for the Future

Question 18

Multiple Choice

For a given level of inflation, if bright prospects for the future of the economy cause businesses to increase their spending on new capital, then the _____ shifts _____.


A) aggregate demand curve; right
B) aggregate demand curve; left
C) short-run aggregate supply line; upward
D) short-run aggregate supply line; downward

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