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Because Increases in the Price Level Reduce Planned Aggregate Expenditure

Question 130

Multiple Choice

Because increases in the price level reduce planned aggregate expenditure and short-run equilibrium output,


A) the short-run aggregate supply line is horizontal.
B) the short-run aggregate supply line is downward-sloping.
C) the aggregate demand curve is horizontal.
D) the aggregate demand curve is downward-sloping.
E) the aggregate demand curve is upward-sloping.

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