If the Price Level ____ as Real GDP Increases, the Multiplier

question 21

Multiple Choice

If the price level ____ as real GDP increases, the multiplier effects of any given change in aggregate demand are ____ than they would be if the price level remains constant.

• A) decreases; smaller
• B) rises; smaller
• C) does not change; smaller
• D) rises; larger
• E) does not change; larger

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