3. As a result of a contraction in aggregate demand, the declines, but over time it returns...

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3. As a result of a contraction in aggregate demand, the declines, but over time it returns to its former level as the expected price level .

a. price level, rises

b. price level, falls

c. level of output, rises

d. level of output, falls

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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