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Question
The short-run and long-run aggregate supply curves remain stable, and a decrease in aggregate demand occurs. What is the result in the short run?
A) An increase in the price level and real GDP will occur.
B) A period of expansion and a rise in the unemployment rate could occur.
C) A period of recession and a rise in the unemployment rate could occur.
D) The price level will fall but real GDP will remain the same.
Answer
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