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A Decrease in Aggregate Demand in the Economy Will Have

Question 148

Multiple Choice

A decrease in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?


A) The price level will fall,and the level of GDP will be unaffected.
B) The price level will fall,and the level of GDP will fall.
C) The price level will rise,and the level of GDP will fall.
D) The price level will rise,and the level of GDP will be unaffected.

Correct Answer:

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