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Assuming that the economy is initially in long-run equilibrium, which one of the following scenarios would result from a sudden increase in aggregate demand in

Assuming that the economy is initially in long-run equilibrium, which one of the following scenarios would result from a sudden increase in aggregate demand in the short run?

The economy will face inflation and a decrease in output. 

The economy will face depression and an increase in output. 

The economy will face stagflation and an increase in output. 

The economy will face inflation and an increase in output. 

The economy will face deflation and a decrease in output.

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