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The Quantity of Real GDP Supplied Decreases If the Price

Question 153

Multiple Choice

The quantity of real GDP supplied decreases if the price level ________ because it ________ profits.


A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) None of the above answers are correct because the AS curve is vertical so that the quantity of real GDP supplied does not change when the price level changes.

Correct Answer:

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