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On the Long-Run Aggregate Supply Curve

Question 102

Multiple Choice

On the long-run aggregate supply curve,


A) a decrease in the price level decreases the level of potential GDP.
B) a decrease in the price level increases the aggregate quantity of GDP supplied.
C) a decrease in the price level decreases the aggregate quantity of GDP supplied.
D) a decrease in the price level has no effect on the aggregate quantity of GDP supplied.
E) only decreases in the price level caused by shifts in aggregate demand increase the aggregate quantity of GDP supplied.

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