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In the Keynesian Model Which Includes the Keynesian Short-Run Aggregate

Question 129

Multiple Choice

In the Keynesian model which includes the Keynesian short-run aggregate supply curve


A) an increase in aggregate demand would causes the price level to rise, but does not change the level of real GDP.
B) an increase in aggregate demand causes real GDP to rise without changing the price level.
C) an increase in aggregate demand changes neither the price level nor the level of real GDP.
D) an increase in aggregate demand causes real GDP and the price level to decrease.

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