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Assuming the Economy Is Starting at the Natural Rate of Output

Question 83

Multiple Choice

Assuming the economy is starting at the natural rate of output and everything else held constant,the effect of ________ in aggregate ________ is a rise in both inflation and output in the short-run,but in the long-run the only effect is a rise in inflation.


A) a decrease;supply
B) a decrease;demand
C) an increase;supply
D) an increase;demand

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