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In the Simple Keynesian Model,an Increase in Aggregate Demand Leads

Question 127

Multiple Choice

In the simple Keynesian model,an increase in aggregate demand leads to an increase in


A) Real GDP and the price level.
B) the price level and no change in Real GDP for levels of Real GDP below Natural Real GDP.
C) the price level and a decrease in Real GDP.
D) Real GDP and no change in the price level for levels of Real GDP below Natural Real GDP.
E) There is not enough information to answer the question.

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