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Suppose the Following: (1)the Wage Rate Falls,(2)business Taxes Decline,(3)any Change

Question 73

Multiple Choice

Suppose the following: (1) the wage rate falls,(2) business taxes decline,(3) any change in SRAS is greater than any change in AD.Based on this information,in the short run Real GDP will __________ and the price level will __________.


A) rise; rise
B) fall; rise
C) fall; fall
D) rise; fall
E) none of the above

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