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Beginning from a Position of Long- Run Equilibrium, an Expansionary

Question 78

Multiple Choice

Beginning from a position of long- run equilibrium, an expansionary monetary policy by the Bank of Canada causes:


A) aggregate demand for goods and services to exceed potential output.
B) a fall in the general price level.
C) an increase in the level of potential output.
D) aggregate demand for goods and services to fall short of potential output.
E) an increase in most market interest rates.

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