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Under New Keynesian Theory,a Correctly Anticipated Decrease in Aggregate Demand

Question 125

Multiple Choice

Under new Keynesian theory,a correctly anticipated decrease in aggregate demand will lead to __________ in Real GDP and __________ in the price level.


A) a decrease; a decrease
B) no change; an increase
C) no change; no change
D) an increase; an increase
E) an increase; no change

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