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An Unexpected Increase in Aggregate Demand Causes

Question 129

Multiple Choice

An unexpected increase in aggregate demand causes


A) the unemployment rate to fall, with no change in the price level.
B) the price level to rise, but the duration of unemployment will remain constant, so the unemployment rate remains constant.
C) simultaneously the price level to rise and the unemployment rate to fall.
D) simultaneously the price level to fall and the unemployment rate to fall.

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