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How Does an Economic Contraction That Is Caused by a Shift

Question 95

Multiple Choice

How does an economic contraction that is caused by a shift in aggregate demand remedy itself over time?


A) The expected price level rises, shifting aggregate demand right.
B) The expected price level rises, shifting aggregate demand left.
C) The expected price level falls, shifting aggregate supply right.
D) The expected price level falls, shifting aggregate supply left.

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