When the Price Level Rises from 110 to 115,the Aggregate

question 26

Multiple Choice

When the price level rises from 110 to 115,the aggregate level of GDP supplied rises from $80 billion to $120 billion.This ________ relationship represents the ________ relationship between the quantity of real GDP firms are willing to supply and the price level.

• A)negative; short-run
• B)positive; short-run
• C)negative; long-run
• D)positive; long-run

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