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Starting from a Situation of Full Employment,an Increase in Aggregate

Question 142

Multiple Choice

Starting from a situation of full employment,an increase in aggregate demand creates ________ and ________ the price level.


A) an inflationary gap;raises
B) a recessionary gap;lowers
C) a recessionary gap;raises
D) an inflationary gap;lowers
E) a recessionary gap;does not change

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