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An Increase in Aggregate Demand When Aggregate Supply Is Upward

Question 42

Multiple Choice

An increase in aggregate demand when aggregate supply is upward sloping leads to


A) an increase both in the price level and real output.
B) a decrease both in the price level and real output.
C) an increase in the price level and a decrease in real output.
D) a decrease in the price level and an increase in real output.

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