An Increase in Aggregate Demand When the Economy Is Operating

question 226

Multiple Choice

An increase in aggregate demand when the economy is operating at high levels of output is likely to result in

• A) a large increase in both output and the overall price level.
• B) an increase in the overall price level but little or no increase in output.
• C) an increase in output but little or no increase in the overall price level.
• D) little or no increase in either output or the overall price level.

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