Suppose that the economy is at full employment, the price level is 100, and the multiplier is 2. Investment increases by $100 billion. In the short run, the price level ________ because ________.
A) rises; the economy returns to full employment
B) rises; the short-run aggregate supply curve is upward sloping
C) remains at 100; the aggregate demand curve shifts horizontally, which keeps the price level constant
D) remains at 100; the economy initially moves to an above full-employment equilibrium. To return to full employment, aggregate demand decreases
E) falls; investment only increases as the price level falls
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