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For a Given Level of Inflation, If Bright Prospects for the Future

Question 122

Multiple Choice

For a given level of inflation, if bright prospects for the future of the economy cause businesses to increase their investment in new capital, then the ________ shifts ________.


A) aggregate demand curve; right
B) short-run aggregate supply line; downward
C) aggregate demand curve; left
D) short-run aggregate supply line; upward

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