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According to Aggregate Demand and Supply Analysis of Inflation and with Everything

Question 17

Multiple Choice

According to aggregate demand and supply analysis of inflation and with everything else held constant,a continually increasing money supply causes


A) aggregate demand to increase along a stationary aggregate supply curve,leading to continually increasing aggregate output and prices.
B) aggregate supply to decrease along a stationary aggregate demand curve,leading to continually contracting aggregate output and prices.
C) aggregate demand to increase continually as aggregate supply decreases continually,leading to higher and higher price levels.
D) aggregate demand to decrease continually as aggregate supply increases continually,leading to higher and higher price levels.

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