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An Increase in Aggregate Demand in the Classical Range of the Aggregate

Question 21

Multiple Choice

An increase in aggregate demand in the classical range of the aggregate supply curve will


A) increase the price level,but not affect the real domestic output.
B) increase real domestic output,but not affect the price level.
C) decrease both real domestic output and the price level.
D) increase both real domestic output and the price level.

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