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An Increase in the Labour Force While Holding Population Constant

Question 111

Multiple Choice

An increase in the labour force while holding population constant will


A) increase aggregate demand and real GDP,but have no effect on the price level.
B) increase aggregate demand and aggregate supply by the same amounts,causing real GDP to increase and the price level to remain constant.
C) increase aggregate supply and real GDP,but have no effect on the price level.
D) increase aggregate supply and real GDP and lower the price level.

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