Exhibit 10-8 -In the Short Run,if the Economy Is Operating Below Potential

question 31

Multiple Choice

Exhibit 10-8
-In the short run,if the economy is operating below potential output and if the aggregate supply curve shifts outward,then the price level will

• A)decrease and output will increase
• B)increase and output will decrease
• C)decrease and output will decrease
• D)increase and output will increase
• E)increase and output will remain unchanged

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