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Using a Two-Part Aggregate Supply Curve, an Increase in Aggregate

Question 12

Multiple Choice

Using a two-part aggregate supply curve, an increase in aggregate demand when the economy is at less than full employment would be expected to lead to __________ in real GDP and __________ in the price level.


A) an increase; an increase
B) an increase; a decrease
C) an increase; no increase
D) no change; an increase

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