By itself, an increase in aggregate demand increases GDP by the least amount in the .

Name: By itself, an increase in aggregate demand increases GDP by the least amount in the .
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Question

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Real business cycle theory emphasizes the role of supply-side factors, such as changes in technology and productivity, in driving fluctuations in GDP. Therefore, an increase in aggregate demand may have a smaller effect on GDP in this theory compared to other theories that place a greater emphasis on demand-side factors.

By Itself, an Increase in Aggregate Demand Increases GDP by the Least