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vellojo vellojo
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Posts: 2982
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7 years ago
Suppose that the money prices of raw materials increase so that short-run aggregate supply decreases. If the Federal Reserve does not respond, the higher money price of raw materials will
I.   repeatedly shift the aggregate demand curve rightward and raise the price level.
II.   shift the aggregate demand curve rightward and the aggregate supply curve leftward, raising prices.
III.   result initially in lower employment and a higher price level.
A) I only
B) both II and III
C) III only
D) both I and II
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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yaderayadera
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Posts: 492
7 years ago
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vellojo Author
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7 years ago
Everyone I encourage you to thumbs up the answer!

got it right
Studying economics @ Edinburgh U
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