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Because Decreases in Inflation Increase Planned Spending and Short-Run Equilibrium

Question 138

Multiple Choice

Because decreases in inflation increase planned spending and short-run equilibrium output,the


A) inflation adjustment (IA) line is downward-sloping.
B) inflation adjustment (IA) line is upward-sloping.
C) aggregate demand (ADI) curve is horizontal.
D) aggregate demand (ADI) curve is downward-sloping.
E) aggregate demand (ADI) curve is upward-sloping.

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