In the Short Run, Any Fall in EP /P

question 64

Multiple Choice

In the short run, any fall in EP /P, regardless of its causes, will cause

• A) an upward shift in the aggregate demand function and an expansion of output.
• B) an upward shift in the aggregate demand function and a reduction in output.
• C) a downward shift in the aggregate demand function and an expansion of output.
• D) an downward shift in the aggregate demand function and a reduction in output.
• E) an upward shift in the aggregate demand function but leaves output intact.

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