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If an Economy Is in Equilibrium at a Given Price

Question 188

Multiple Choice

If an economy is in equilibrium at a given price level and a given output level,the aggregate demand/aggregate supply (AD/AS) model indicates that an unanticipated decrease in aggregate demand will cause


A) real output to decline.
B) the price level to fall.
C) unemployment to increase.
D) all of the above.

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