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If Aggregate Demand Increases And,as a Result,the Price Level Increases

Question 25

Multiple Choice

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.

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