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    Economics Today
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    Exam 6: Modelling Real Gdp and the Price Level in the Long Run
  5. Question
    What Happens When Economic Growth Occurs Without a Corresponding Increase
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What Happens When Economic Growth Occurs Without a Corresponding Increase

Question 1

Question 1

Multiple Choice

What happens when economic growth occurs without a corresponding increase in aggregate demand?


A) Aggregate demand is stagnant.
B) there is no change in the price level.
C) the price level declines over time.
D) the price level increases over time

Correct Answer:

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