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Answer to Question #56891 in Macroeconomics for Tom
Question #56891
Consider the aggregate demand & aggregate supply model with three ranges. In which range will an increase in aggregate demand cause an output and employment increase without causing inflation?
a. Keynesian
b. intermediate
c. classical
d. None of these since an increase in aggregate demand must by definition cause an increase in prices.
a. Keynesian
b. intermediate
c. classical
d. None of these since an increase in aggregate demand must by definition cause an increase in prices.
Expert's answer
d. None of these since an increase in aggregate demand must by definition cause an increase in prices.
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