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The Economy Is in Long-Run Equilibrium When There Is a Correctly

question 97

Multiple Choice

The economy is in long-run equilibrium when there is a correctly anticipated increase in aggregate demand.According to new classical theory,the price level will __________ and Real GDP will __________.


Definitions:

Chauffeur

A person employed to drive a private or hired car, especially a luxury vehicle typically for someone else.

BMW

A German multinational corporation that produces luxury vehicles and motorcycles.

Sued By Principal

The action where a principal, often in a legal or business context, initiates a lawsuit against another party.

Default

The failure to fulfill a legal obligation, such as not making a payment on a loan.

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