If a government spending program increases the natural rate of output, then the equilibrium price level does not necessarily rise in the AS-AD model.
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Q3: The IS-LM model and the quantity theory
Q4: An increase in consumption causes AS to
Q5: People who believe the adjustment of AS
Q6: If output is above the natural rate,
Q7: An increase in the interest rate shifts
Q8: An increase in investment shifts aggregate demand
Q9: If there is high unemployment, AS would
Q10: The AS-AD model shows long-run money neutrality.
Q11: According to the AS-AD model with output
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