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    Exam 10: Aggregate Supply and Aggregate Demand
  5. Question
    -In the Above Figure, the Economy Initially Is at Point
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-In the Above Figure, the Economy Initially Is at Point

Question 112

Question 112

Multiple Choice

  -In the above figure, the economy initially is at point C. Then the domestic price level rises by 10. A A)  substitution effect would help move the economy to point D. B)  substitution effect would help move the economy to point B. C)  substitution effect would keep the economy at point C. D)  wealth effect would help move the economy to point B.
-In the above figure, the economy initially is at point C. Then the domestic price level rises by 10. A


A) substitution effect would help move the economy to point D.
B) substitution effect would help move the economy to point B.
C) substitution effect would keep the economy at point C.
D) wealth effect would help move the economy to point B.

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