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Suppose a Shift in the Aggregate Demand Curve Causes Prices

Question 47

Multiple Choice

Suppose a shift in the aggregate demand curve causes prices to increase a lot and real output to increase by a little.What does this suggest about the shape of short-run aggregate supply curve?  


A)  It is horizontal. 
B)  It is very steep. 
C)  It is vertical. 
D)  It is downward sloping.

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