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Which of the following statements are true according to AD-AS model? when output is above its natural level, prices over time. The short run and
Which of the following statements are true according to AD-AS model?
- when output is above its natural level, prices over time.
- The short run and the long run effects of an increase in money supply on output are the same
- The aggregate demand curve is downward sloping because a fall in real money balances causes a decrease in the demand for goods and services
A. 3 only
B. 2 and 3 only
C. 1 only
D. 1 and 3 only
E. 1 and 2 only
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