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Use the Following Graph to Answer the Following Questions

Question 4

Multiple Choice

Use the following graph to answer the following questions.The graph depicts an economy where aggregate demand and long-run aggregate supply (LRAS) have decreased,with no change in short-run aggregate supply (SRAS) .
Use the following graph to answer the following questions.The graph depicts an economy where aggregate demand and long-run aggregate supply (LRAS) have decreased,with no change in short-run aggregate supply (SRAS) .    -As a result of aggregate demand and long-run aggregate supply decreasing,we can see that the price level ________ and real gross domestic product (GDP) ________. A)  remained unchanged; decreased B)  increased; decreased C)  decreased; remained unchanged D)  remained unchanged; increased E)  increased; increased
-As a result of aggregate demand and long-run aggregate supply decreasing,we can see that the price level ________ and real gross domestic product (GDP) ________.


A) remained unchanged; decreased
B) increased; decreased
C) decreased; remained unchanged
D) remained unchanged; increased
E) increased; increased

Correct Answer:

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