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MMLU / When both short-run aggregate supply and aggregate demand increase which of the…

Problem

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question

When both short-run aggregate supply and aggregate demand increase which of the following can be said for certain?

choices

  1. The price level rises but real GDP falls.
  2. Both the price level and real GDP rise.
  3. The price level rises but the change in real GDP is uncertain.
  4. Real GDP rises but the change in the price level is uncertain.

subject

high_school_macroeconomics

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Source and history

Official source

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