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A Simultaneous Rise in Both Aggregate Demand and Short-Run Aggregate

Question 89

Multiple Choice

A simultaneous rise in both aggregate demand and short-run aggregate supply will definitely


A) raise the price level,but there is not enough information provided to know how Real GDP will change.
B) lower Real GDP,but there is not enough information provided to know how the price level will change.
C) raise the price level and Real GDP.
D) raise Real GDP,but there is not enough information provided to know how the price level will change.
E) raise the price level and lower Real GDP.

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