If everything else is held constant,an increase in the price level __________ planned aggregate expenditure and __________ short-run equilibrium output.

Name: If everything else is held constant,an increase in the price level __________ planned aggregate expenditure and __________ short-run equilibrium output.
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Question

Quizplus · Accepted Answer

An increase in the price level reduces the purchasing power of money, leading to a decrease in planned aggregate expenditure and consequently a decrease in short-run equilibrium output.

If Everything Else Is Held Constant,an Increase in the Price