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Suppose Fiscal Policymakers Increase Aggregate Demand in an Attempt to Decrease

Question 81

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Suppose fiscal policymakers increase aggregate demand in an attempt to decrease the unemployment rate below the natural rate of unemployment.What will be the only lasting effect?  


A)  Real GDP will remain the same. 
B)  Price level will rise. 
C)  Real GDP will rise. 
D)  Real GDP will fall.

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