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For an Economy at Full Employment, an Increase in the Quantity

Question 164

Multiple Choice

For an economy at full employment, an increase in the quantity of money will lead to which of the following sequences of shifts in aggregate demand and supply curves?


A) decreased aggregate demand, increased short-run aggregate supply, constant long-run aggregate supply
B) decreased aggregate demand, decreased short-run aggregate supply, decreased long-run aggregate supply
C) increased aggregate demand, increased short-run aggregate supply, increased long-run aggregate supply
D) increased aggregate demand, decreased short-run aggregate supply, constant long-run aggregate supply

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