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Given the Aggregate Demand Curve,a Beneficial Supply Shock Will

Question 108

Multiple Choice

Given the aggregate demand curve,a beneficial supply shock will:


A) increase potential output and the price level.
B) decrease potential output and the price level.
C) increase potential output and decrease the price level.
D) decrease potential output and increase the price level.
E) cause no change in potential output or the price level.

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