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Suppose the Short-Run Aggregate Supply Curve Has a Positive Slope

Question 37

Multiple Choice

Suppose the short-run aggregate supply curve has a positive slope.And suppose an effective fiscal policy to correct for an expansionary gap effect is implemented.What variable will be affected?
 


A)  only the price level, which will fall 
B)  only real GDP, which will fall 
C)  only the price level, which will rise 
D)  the price level and real GDP, both of which will fall

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