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Some Economists Believe That a Positive Aggregate Demand Shock to an Economy

Question 264

Multiple Choice

Some economists believe that a positive aggregate demand shock to an economy with large amounts of excess capacity and unemployment does not necessarily cause an increase in prices. Economists who adhere to this belief are followers of


A) classical economics.
B) Say's laws of economics.
C) Keynesian economics.
D) supply-side economics.

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