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Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. If the effect on aggregate demand was larger than the figure above shows, as a result the price level would be--------------------
110 and real GDP would be --------------------$14 trillion.
A) equal to; larger than
B) higher than; larger than
C) smaller than; less than
D) smaller than; larger than
E) equal to; equal to
Correct Answer:
Verified
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