An Increase in Aggregate Demand Is Beneficial in the Short

question 166

Multiple Choice

An increase in aggregate demand is beneficial in the short run because ________,but harmful in the long run because ________.

• A) output decreases; the unemployment rate falls
• B) the unemployment rate falls; the price level rises
• C) wages decrease; wages increase
• D) real wealth decreases; real wealth increases
• E) wages increase; the unemployment rate rises

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