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If Aggregate Supply Decreases and Aggregate Demand Remains Unchanged

Question 45

Multiple Choice

If aggregate supply decreases and aggregate demand remains unchanged


A) there will be a positive relationship between the price level and the level of aggregate output.
B) there will be a negative relationship between the price level and the level of aggregate output.
C) there will be no systematic relationship between the price level and the level of aggregate output.
D) the price level will remain unchanged, but aggregate output will decrease.

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