If the economy is in a deep recession, a modest increase in aggregate demand is likely to cause _____ in prices and _______ in output level.

a) an increase; an increase
b) an increase; little or no change
c) a decrease; an increase
d) little or no change; an increase
e) little or no change; little or no increase


Answer: d) little or no change; an increase

Economics

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A change in net taxes affects the equilibrium quantity of GDP demanded_____

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Economics