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According to Classical Macroeconomic Theory,if Real GDP Is Below the Full-Employment

Question 170

Multiple Choice

According to classical macroeconomic theory,if real GDP is below the full-employment level,then an increase in aggregate demand will result in which of the following changes in equilibrium?


A) Real GDP will rise, but the price level will remain constant.
B) Real GDP and the price level will both rise.
C) Real GDP will remain unchanged but the price level will rise.
D) None of the above.

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