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Within the Framework of the AD/AS Model,if Consumers and Investors

Question 116

Multiple Choice

Within the framework of the AD/AS model,if consumers and investors become more pessimistic about the future direction of the economy,this will lead to a(n)


A) increase in aggregate demand.
B) decrease in aggregate demand.
C) increase in long-run aggregate supply (LRAS shifts to the right) .
D) reduction in the natural rate of unemployment.

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