If Aggregate Demand Increases And,as a Result,real Domestic Output and Employment

question 125

Multiple Choice

If aggregate demand increases and,as a result,real domestic output and employment increase but the price level remains unchanged,we can assume that

• A)the money supply has declined.
• B)aggregate demand intersects aggregate supply in the Keynesian range of the aggregate supply curve.
• C)aggregate demand intersects aggregate supply in the intermediate range of the aggregate supply curve.
• D)aggregate demand intersects aggregate supply in the classical range of the aggregate supply curve.

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