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When Aggregate Demand Meets Aggregate Supply in the Vertical Portion

Question 9

Multiple Choice

When aggregate demand meets aggregate supply in the vertical portion of the aggregate supply curve,


A) an increase in demand will cause prices to rise but no change in output.
B) an increase in demand will cause output to rise but no change in prices.
C) an increase in demand will cause prices to fall but no change in output.
D) an increase in demand will cause output to fall but no change in prices.

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