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Suppose the Price Level Is Lower Than Expected

Question 122

Multiple Choice

Suppose the price level is lower than expected.How will this affect output?  


A)  Businesses will decrease production. 
B)  Businesses will increase production. 
C)  Initially, the short-run aggregate supply curve will shift leftward, but later the movement will be downward along the curve. 
D)  Initially, the short-run aggregate supply curve will shift leftward, but later the movement will be upward along the curve.

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