Multiple Choice
If aggregate demand increases and,as a result,real domestic output and employment increase but the price level remains unchanged,we can assume that
A) the money supply has declined.
B) aggregate demand intersects aggregate supply in the Keynesian range of the aggregate supply curve.
C) aggregate demand intersects aggregate supply in the intermediate range of the aggregate supply curve.
D) aggregate demand intersects aggregate supply in the classical range of the aggregate supply curve.
Correct Answer:
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