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Which of the Following Will Most Likely Occur in the Short

Question 2

Multiple Choice

Which of the following will most likely occur in the short run when the long-run equilibrium of an economy is disturbed by an unanticipated decrease in aggregate demand?


A) a decrease in output and a higher price level
B) an increase in output and a higher price level
C) a decrease in output and a lower price level
D) an increase in output while prices remain unchanged

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