Multiple Choice
In the aggregate demand-aggregate supply model, if entrepreneurs become convinced that future profitability of capital has increased,
A) current output will fall, but the price level will rise.
B) current output will rise, but the price level will fall.
C) current output and the price level will both rise.
D) current output and the price level will both fall.
Correct Answer:
Verified
Correct Answer:
Verified
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