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An Increase in Short-Run Aggregate Supply Immediately Leads To

Question 15

Multiple Choice

An increase in short-run aggregate supply immediately leads to:


A) an increase in real wealth and a shift of the aggregate demand curve.
B) an increase in real wealth and a movement along the aggregate demand curve.
C) a shift of the aggregate demand curve caused by menu costs.
D) a shift of the aggregate demand curve caused by money illusion.
E) an increase in money illusion and a movement along the aggregate demand curve.

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