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Suppose the Economy Is Producing at the Natural Rate of Output.A

Question 59

Multiple Choice

Suppose the economy is producing at the natural rate of output.A decrease in consumer and business confidence will cause ________ in real GDP in the long run and ________ in the aggregate price level in the long run,everything else held constant.


A) an increase; an increase
B) a decrease; a decrease
C) no change; an increase
D) no change; a decrease

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