The Effect of a Shift in the Aggregate Demand Curve

question 102

Multiple Choice

The effect of a shift in the aggregate demand curve due to an increase in consumer confidence will be:

• A) an increase in both prices and output in the short run.
• B) a decrease in prices only in the long run; output will remain the same.
• C) a decrease in both prices and output in the short run.
• D) an increase in output only in the long run; prices will remain the same.

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Definitions:

Intonation

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