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Suppose a Prolonged War in a Country Destroys 30% of the Capital

Question 65

Multiple Choice

Suppose a prolonged war in a country destroys 30% of the capital stock.In the long run,the price level will ________ as ________.


A) increase; short-run aggregate supply decreases
B) decrease; both long-run and short-run aggregate supply decrease
C) decrease; long-run aggregate supply decreases
D) remain unchanged; long-run aggregate supply decreases
E) increase; both long-run and short-run aggregate supply decrease

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