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Compared to the initial equilibrium, an initial increase in aggregate demand that is NOT followed by

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Compared to the initial equilibrium, an initial increase in aggregate demand that is NOT followed by

Compared to the initial equilibrium, an initial increase in aggregate demand that is NOT followed by an increase in the quantity of money results in new long-run equilibrium with
A) a higher price level but the same real GDP.
B) a higher price level and an increased level of real GDP.
C) the same price level and a lower level of real GDP.
D) the same price level and the same real GDP.
E) None of the above answers is correct.

Textbook

Essential Foundations of Economics

Edition: 7^th

Authors: Bade, Parkin

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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.

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Loraine Author

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