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Other Things Equal, an Increase in Aggregate Supply Will Cause

Question 6

Multiple Choice

Other things equal, an increase in aggregate supply will cause:


A) a decrease in equilibrium real GDP and a decrease in the equilibrium price level.
B) an economic contraction.
C) an increase in equilibrium real GDP and an increase in the equilibrium price level.
D) cost-push inflation.
E) a reduction in unemployment and a decline in inflation.

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