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If Prices Are Completely Flexible,then a Positive Aggregate Demand Shock

Question 168

Multiple Choice

If prices are completely flexible,then a positive aggregate demand shock will lead to:


A) an immediate upward shift of the SRAS curve.
B) an immediate downward shift of the SRAS curve.
C) a shift of the long-run aggregate supply curve to the right.
D) a shift of the long-run aggregate supply curve to the left.

Correct Answer:

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