If the Economy Is in Equilibrium at Full Employment, a Decrease

question 134

Multiple Choice

If the economy is in equilibrium at full employment, a decrease in aggregate demand will:

• A) increase both the price level and the level of output in the long run.
• B) decrease both the price level and the level of output in the long run.
• C) decrease the price level and leave the level of output unchanged in the long run.
• D) increase the price level and leave the level of output unchanged in the long run.

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