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In the Long Run, as the Economy Self-Corrects, a Decrease

Question 236

Multiple Choice

In the long run, as the economy self-corrects, a decrease in aggregate demand, all other things unchanged, will cause the price level to _____ and potential output to _____.


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

Correct Answer:

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