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Because of Intertemporal Substitution, a Negative Shock to Aggregate Demand

Question 38

Multiple Choice

Because of intertemporal substitution, a negative shock to aggregate demand results in


A) a shift of the Solow growth curve to the right.
B) a shift of the Solow growth curve to the left.
C) an upward movement along the Solow growth curve.
D) a downward movement along the Solow growth curve.

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