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Unformatted text preview: b. price level ‐ Þ demand for money ˉ Þ equilibrium interest rate ‐ Þ quantity of goods and services demanded ˉ
c. price level ˉ Þ demand for money ˉ Þ equilibrium interest rate ‐ Þ quantity of goods and services demanded ˉ
d. price level ‐ Þ equilibrium interest rate ‐ Þ demand for money ‐ Þ quantity of goods and services demanded ˉ 5 Name: ________________________ ID: A 24. When taxes increase, consumption
a. increases, so aggregate demand shifts right.
b. increases, so aggregate supply shifts right.
c. decreases, so aggregate demand shifts left.
d. decreases, so aggregate supply shifts left. 25. The aggregate supply curve is upward sloping in a. the short and long run.
b. neither the short nor long run.
c. the long run, but not the short run.
d. the short run, but not the long run. 26. If the economy is initially at long‐run equilibrium and aggregate demand declines, then in the long run...
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This test prep was uploaded on 02/19/2014 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue University-West Lafayette.
- Fall '08