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    Macroeconomics Study Set 48
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    Exam 12: Aggregate Demand and Aggregate Supply
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    In the Long Run, as the Economy Self-Corrects, an Increase
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In the Long Run, as the Economy Self-Corrects, an Increase

Question 248

Question 248

Multiple Choice

In the long run, as the economy self-corrects, an increase in aggregate demand will cause the price level to _____ and potential output to _____.


A) rise; increase
B) fall; decrease
C) rise; remain stable
D) fall; remain stable

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