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What Happens in an Economy When Short-Run Aggregate Supply Decreases

Question 112

Multiple Choice

What happens in an economy when short-run aggregate supply decreases?


A) The price level rises, output rises, and an expansion occurs.
B) The price level rises, output falls, and a recession occurs.
C) The price level falls, output rises, and an expansion occurs.
D) The price level falls, output falls, and a recession occurs.

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