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A shock that decreases input prices but doesn't increase the full-employment level of output will result in: A. Greater output in the short run and
A shock that decreases input prices but doesn't increase the full-employment level of output will result in:
A. Greater output in the short run and lower price level in the long run
B. Greater output in the short run and higher price level in the long run
C. An increase in aggregate demand
D. Greater output in the short run and no change in the price level in the long run
E. A lower price level in the short run and higher output in the long run
Why?
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