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An Increase in the General Level of Prices in the Goods

Question 107

Multiple Choice

An increase in the general level of prices in the goods and services market that is accompanied by a short-run expansion in output is most likely caused by


A) an unanticipated decrease in aggregate demand.
B) an unanticipated increase in aggregate demand.
C) a favorable supply shock that shifts SRAS to the right.
D) an unfavorable supply shock that shifts SRAS to the left.

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