If Aggregate Demand Increases and Aggregate Supply Decreases, the Price

question 302

Multiple Choice

If aggregate demand increases and aggregate supply decreases, the price level

• A) will decrease, but real output may increase, decrease, or remain unchanged.
• B) will increase, but real output may increase, decrease, or remain unchanged.
• C) and real output will both increase.
• D) and real output will both decrease.

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