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If Factor Prices Remain Constant, an Increase in Aggregate Demand

Question 56

Multiple Choice

If factor prices remain constant, an increase in aggregate demand


A) increases the price level and increases real GDP.
B) increases the price level and decreases real GDP.
C) decreases the price level and increases real GDP.
D) decreases the price level and decreases real GDP.
E) increases the price level, and leaves real GDP unchanged.

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