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From an Initial AD/SAS/LAS Intersection,a Fiscal Stimulus with No Initial

Question 94

Multiple Choice

From an initial AD/SAS/LAS intersection,a fiscal stimulus with no initial change in the nominal wage causes output to ________ while the price level ________.


A) rise,remains constant
B) rise,rises
C) remains constant,rises
D) remains constant,falls
E) fall,rises

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