If aggregate demand increases and,as a result,the price level increases but equilibrium real GDP and employment remain unchanged,we can assume that the aggregate demand curve
A) intersects the upward-sloping segment of the aggregate supply curve.
B) intersects the vertical segment of the aggregate supply curve.
C) intersects the horizontal segment of the aggregate supply curve.
D) is horizontal.
Correct Answer:
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Q20: Under what condition will an increase in
Q21: An increase in aggregate demand in the
Q22: "The economy can be in equilibrium,with aggregate
Q23: The notion that everything the economy produces
Q24: In order to predict changes in aggregate
Q26: The vertical portion of the AS curve
A)is
Q27: In the "classical" region of the aggregate
Q28: Under what condition will a decrease in
Q29: Keynesian theory
A)Established the validity of Say's Law.
B)Assumes
Q30: According to classical macroeconomic theory,
A)aggregate supply automatically
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