An Increase in Aggregate Demand in the Classical Range of the Aggregate

question 233

Multiple Choice

An increase in aggregate demand in the classical range of the aggregate supply curve will

• A)increase the price level,but not affect the real domestic output.
• B)increase real domestic output,but not affect the price level.
• C)decrease both real domestic output and the price level.
• D)increase both real domestic output and the price level.

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