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Starting from Long-Run Equilibrium, an Increase in Aggregate Demand Increases

Question 51

Multiple Choice

Starting from long-run equilibrium, an increase in aggregate demand increases ______ in the short run, but only increases ______ in the long run.

A) output; prices
B) prices; output
C) short-run aggregate supply; long-run aggregate supply
D) the money supply; the natural rate of output

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