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In the Aggregate Demand-Aggregate Supply Model in the Short Run

Question 159

Multiple Choice

In the aggregate demand-aggregate supply model in the short run, an increase in the money supply will lead to a(n) _____


A) increase in both the price level and real GDP.
B) increase in the price level only.
C) increase in real GDP and a decrease in the price level.
D) decrease in real GDP and an increase in the price level.

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