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Answer to Question #109795 in Macroeconomics for Kalyn

Question #109795
Consumers expect higher price levels in the future. What happens to aggregate supply and aggregate demand what happens to the price level and real GDP
1
Expert's answer
2020-04-15T09:49:11-0400

At higher levels of prices, real GDP will decline.

At higher price levels, aggregate supply and aggregate demand will decrease.

Price level will increase.



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