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When the Price Level Falls from 135 to 120, the Aggregate

Question 136

Multiple Choice

When the price level falls from 135 to 120, the aggregate level of GDP supplied falls from $140 billion to $125 billion.This ________ relationship represents the ________ relationship between GDP and the price level.


A) negative; short-run
B) positive; short-run
C) negative; long-run
D) positive; long-run
E) negative; medium-run

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