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If an Economy Was Initially in Long-Run Equilibrium,an Unanticipated Increase

Question 182

Multiple Choice

If an economy was initially in long-run equilibrium,an unanticipated increase in aggregate demand will tend to cause


A) an increase in unemployment.
B) a decrease in the price of resources.
C) a reduction in real output that will spiral downward into a prolonged recession.
D) a temporarily high level of output and employment that cannot be maintained.

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