If the Aggregate Demand and Supply Curves Intersect in the Horizontal

question 49

Multiple Choice

If the aggregate demand and supply curves intersect in the horizontal range of the aggregate supply curve,an increase in aggregate demand increases

• A) the price level but not the total real output.
• B) total real output but not the price level.
• C) both total real output and the price level.
• D) neither total real output nor the price level.
• E) total employment while decreasing the price level.

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