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We Observe an Increase in the Price Level and an Increase

Question 100

Multiple Choice

We observe an increase in the price level and an increase in real GDP. Which of the following is a possible explanation?


A) a decrease in the quantity of money
B) a decrease in expected future income
C) an increase in factor prices
D) an increase in the quantity of capital
E) an increase in expected future profits

Correct Answer:

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