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A Decrease in Aggregate Demand Is Harmful in the Short

Question 167

Multiple Choice

A decrease in aggregate demand is harmful in the short run because ________,but beneficial in the long run because ________.


A) real wealth rises; real wealth falls
B) wages increase; wages decrease
C) the price level rises; output falls
D) unemployment rises; the price level falls
E) the price level falls; the unemployment rate rises

Correct Answer:

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