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In Order for an Increase in Aggregate Demand to Raise

Question 2

Multiple Choice

In order for an increase in aggregate demand to raise Real GDP and the price level,the aggregate supply curve must be ____________________.If an increase in aggregate demand raises the price level but leaves Real GDP unchanged,the aggregate supply curve must be _____________________.


A) upward-sloping; vertical
B) upward-sloping; horizontal
C) downward sloping; vertical
D) vertical; upward-sloping
E) vertical; downward-sloping

Correct Answer:

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