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According to New Classical Economists,if a Decrease in Aggregate Demand

Question 1

Multiple Choice

According to new classical economists,if a decrease in aggregate demand is correctly anticipated,the short-run aggregate supply curve will shift __________ at the same time the AD curve shifts _________ so that there will be no change in Real GDP.


A) rightward; rightward
B) leftward; rightward
C) leftward; leftward
D) rightward; leftward
E) none of the above

Correct Answer:

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